Eighteen Republican state attorneys general have filed a lawsuit against the SEC and Chair Gary Gensler, claiming that the securities regulator is overstepping its authority in regulating the crypto industry. The states, including Kentucky, Florida, and Texas, argue that economic policy, particularly regarding cryptocurrency, should be managed by state regulators rather than federal law. They allege that the SEC is improperly trying to apply federal securities laws to digital assets. Gensler, speaking at a legal conference, defended the SEC's actions, stating that they are grounded in law and aimed at protecting investors. However, the lawsuit reflects broader industry hopes for a shift in regulatory approach, especially with the potential for a change in administration following the upcoming elections. The legal action could signify a significant struggle over the future governance of digital assets and the extent of federal authority in this burgeoning sector.

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