18 US states have filed a lawsuit against the US Securities and Exchange Commission and its commissioners, including chair Gary Gensler. The various states accuse the SEC of unconstitutional overreach and unfair persecution of the crypto industry under the leadership of Gensler. The commission and its chair have been heavily criticized by the US government and crypto supporters alike for their iron-fist approach to cryptocurrency, according to Fox Business insider Eleanor Terrett. Many have even called for Gary Gensler to step down from his role, with some expecting him to do so very soon. However, the latest lawsuit filing is the biggest yet against the SEC.
The complaint was filed in collaboration with crypto advocacy group DeFi Education Fund. Additionally, it was signed by 18 Republican Attorneys General from across the US from the following states:
- Kentucky
- Nebraska
- Tennessee
- West Virginia
- Iowa
- Texas
- Mississippi
- Montana
- Arkansas
- Ohio
- Kansas
- Missouri
- Indiana
- Utah
- Louisiana
- South Carolina
- Oklahoma
- Florida
Terret details how the agency has committed “gross government overreach” with its regulation by enforcement crusade against the $3 trillion industry, resulting in an infringement upon states’ rights to regulate their economies. According to the complaint, the SEC’s penalties and restrictions on crypto have introduced what attorney generals say are “significant risks” to one of America’s fastest-growing economic sectors.
SEC Faces New Lawsuit: Gary Gensler to Step Down from Crypto Battle?
Over the last several years, the cryptocurrency industry has struggled with regulatory clarity in the United States. To many within the sector, Gary Gensler and the SEC are a primary reason why. The SEC had consistently adopted a regulation-by-enforcement approach led by Gensler. That was evident in its multi-year battle with Ripple (XRP) and continued lawsuits against other firms.
Also Read: Trump Proposes Bitcoin Advocate Matt Gaetz as Attorney General
With Donald Trump taking over as US president in 2025, the cryptocurrency industry is hoping to witness drastic changes in the SEC. The latest lawsuit from these 18 states may be one of the final gut punches against Gensler’s SEC, with speculation rising that he may resign as SEC chair soon. Donald Trump and his camp are already weighing options on a suitable replacement. Furthermore, many of his early candidates have openly spoken in support of crypto: even bigger news for the industry.
Following Donald Trump’s US election win earlier this month, the entire crypto industry saw a significant pump. Bitcoin is now trading at new all-time highs and is set to surpass six digits in price any day now. The rest of the crypto market is following suit, with meme coins and altcoins alike seeing gains. It is entirely possible that if this lawsuit is successful against the SEC, along with a Gensler resignation, the ongoing crypto boom will reach all new levels.
