Connect with us

Hi, what are you looking for?

18 us states
18 us states

Cryptocurrency

18 states challenge the SEC’s authority in a lawsuit against Gary Gensler for cryptocurrency regulations

There is a lawsuit against the SEC in 18 U.S. states, which say it went too far in regulating the cryptocurrency business. The case raises questions about how the SEC works and what it does to police the law under Chairman Gary Gensler’s direction.

Eighteen U.S. states have sued the Securities and Exchange Commission (SEC) and its head, Gary Gensler, saying that the SEC’s actions against the cryptocurrency business are against the Constitution. The states, such as Kentucky, Texas, and Florida, say that the SEC is abusing its power by controlling digital assets without clear permission from Congress.

It was filed in Kentucky and says that the SEC’s attempts to regulate crypto platforms like exchanges and companies that make digital assets hurt states’ rights to control their own economies. The states assert that Gensler’s classification of most cryptocurrencies as securities has resulted in numerous costly enforcement actions, hindering the industry’s growth and innovation. Some individuals have expressed that the lack of clarity in the SEC’s regulatory actions has led to confusion and uncertainty among crypto firms.

The DeFi Education Fund is the driving force behind this case. This is a group that wants better rules for decentralized finance. It aims to stop the SEC from taking more legal action against crypto companies unless Congress gives it greater permission.

Gary Gensler has defended the SEC’s actions despite the ongoing lawsuit, asserting that securities law covers many digital assets. But the pushback from state leaders and the crypto industry as a whole shows that there is growing disagreement over how to control this quickly changing field.

The outcome of this case could alter the balance of power between the federal and state governments, which could significantly impact future crypto regulations in the U.S.

author avatar
Sagar Saini
A dedicated freelance blogger with a strong passion for finance and business, With a keen interest in the world of cryptocurrency.
Advertisement

You May Also Like

Cryptocurrency

In a significant turn for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) is no longer moving forward with its inquiry into...

Cryptocurrency

Though European banks are unable to keep up with the demand, the crypto market is attracting more attention these days. Though consumer and business...

Cryptocurrency

A court has tentatively lifted the three-month ban on Upbit, the largest digital asset exchange in South Korea, marking a significant development for the...

Cryptocurrency

Amid the financial pressure on many companies to examine Bitcoin, it is estimated that a quarter of the S&P companies will have Bitcoin in...

polkadot
Polkadot (DOT) $ 3.98 2.73%
bitcoin
Bitcoin (BTC) $ 83,470.36 1.88%
ethereum
Ethereum (ETH) $ 1,801.61 4.00%
cardano
Cardano (ADA) $ 0.64497 5.34%
xrp
XRP (XRP) $ 2.03 4.34%
stellar
Stellar (XLM) $ 0.258488 3.45%
litecoin
Litecoin (LTC) $ 82.88 0.33%