Eighteen U.S. states have initiated a lawsuit against the Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler, alleging that the regulator is engaging in gross government overreach that threatens the emerging cryptocurrency sector. The plaintiffs, including states such as Nebraska, Tennessee, and Wyoming, claim that the SEC has failed to respect the boundaries of its authority and has been attempting to exert regulatory control over the states without Congressional approval. The legal complaint emphasizes the SEC's series of enforcement actions as overreaching and detrimental to the growth of the crypto industry. The Blockchain Association highlighted that the SEC's actions impose significant costs on crypto firms, complicating their ability to navigate an unclear digital asset policy landscape. This situation is ongoing, with updates expected as the case unfolds.

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