The US Securities and Exchange Commission wants to “unilaterally strip states of regulatory authority” when it comes to crypto. A lawsuit from 18 statesThese states want to block the SEC's enforcement actions so they can manage crypto regulation instead. Also named as plaintiff in lawsuit DeFi Education FundA special interest lobbyists,
Controversial SEC Chairman Gary Gensler He is named in the lawsuit along with other SEC commissioners. Gensler's behavior toward crypto during his time as chairman has made him a punching bag for the industry — and for Republicans like President-elect Donald Trump.
Gensler's SEC notes Important victory against the crypto industry – And in several court cases, judges have agreed that the SEC has jurisdiction over crypto. “The SEC's broad claim of regulatory jurisdiction is untenable,” the lawsuit claims. “The digital assets involved here are just that – assets, not investment contracts covered by federal securities laws.”
This is both annoying and Highly controversial. Coinbase, which is being sued by the SEC, has argued that the lawsuit should be dismissed because Coinbase is not trading securities. US District Judge Katherine Polk Faila Ruling against Coinbase – And the matter is moving forward. “The ‘crypto’ nomenclature may be recent, but the challenged transactions fall within a framework that courts have been using to identify securities for nearly eighty years,” Fella wrote.
The states' lawsuit also argues that a precedent has been set key question theory This means that the SEC should not prosecute the crypto industry without congressional approval. It is also highly controversial: judges rejected this line of argument. Terraform Labs And coinbase,