Republican AGs Challenge SEC's Crypto Regulation in Court

Eighteen states sue the SEC, alleging overreach in its enforcement actions against the cryptocurrency industry.

The lawsuit, joined by the DeFi Education Fund, argues that the SEC's actions violate federalism and the separation of powers by infringing on states' rights to regulate digital assets.
The states claim that the SEC's enforcement approach lacks Congressional authorization and improperly applies federal securities laws to digital assets.
SEC Chair Gary Gensler defends the agency's actions, asserting that courts have supported the SEC's mandate to protect investors.
President-elect Donald Trump's administration is expected to appoint a more crypto-friendly SEC chair, potentially altering the regulatory landscape.
The lawsuit highlights the growing political influence of the crypto industry, which contributed significantly to recent federal campaigns.