In the United States, 18 states filed a lawsuit against the Securities and Exchange Commission (SEC) and five of its commissioners, accusing them of unconstitutional abuse of power and interference in the cryptocurrency industry, which is already capitalized at $3 trillion.
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The main reason for the conflict, as reported by Fox Business, was the position of SEC head Gary Gensler, who believes that most cryptocurrencies, with the exception of Bitcoin (BTC) and Ethereum (ETH), should be regulated as securities. The plaintiffs argue that this interpretation of the law is inconsistent with the intent of Congress and violates the principles of federalism by infringing on the rights of states to independently regulate the economy. Additionally, this stance has led to numerous lawsuits against major crypto industry players such as Coinbase, Kraken, and Ripple.
The lawsuit argues that by imposing fines and restrictions on digital asset platforms without an adequate regulatory framework, the SEC’s actions create “regulatory uncertainty,” stifle innovation and harm the American economy. Prosecutors also point out that Congress deliberately did not give federal agencies the authority to regulate digital assets, leaving the issue to states.
«Fundamentally, the SEC’s over-regulation is contrary to the basic principles of federalism and separation of powers. The SEC’s claims to blanket jurisdiction without congressional authorization deprive states of their proper sovereign role and impede the development of innovative regulatory frameworks for the digital asset industry,” the document states.
The lawsuit was filed in Kentucky District Court under the leadership of state Attorney General Russell Coleman with the support of 17 other Republican prosecutors from states such as Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma and Florida. Also involved in filing the lawsuit was the cryptocurrency advocacy group DeFi Education Fund, which promotes sound policies in the field of decentralized finance.
It’s worth noting that the lawsuit was filed against the backdrop of President-elect Donald Trump’s promises to support the cryptocurrency industry and end what he called the Biden administration’s “war on cryptocurrencies.” At the same time, uncertainty regarding the future leadership of the SEC in connection with the arrival of a new administration adds intrigue to this situation, and the outcome of the trial could have a significant impact on the future of cryptocurrency regulation in the United States and determine the direction of development of this fast-growing industry.