Key Points
- 18 US states accused the SEC of unconstitutional crypto overreach and unfair persecution.
- SEC Chair, Gary Gensler, defended his approach to crypto regulation.
According to the latest reports from Eleanor Terrett from Fox News, 18 US states have filed to sue the US SEC, accusing them of unconstitutional overreach and unfair persecution of the crypto industry under the leadership of Gary Gensler.
Also, the SEC’s chief released an officiant statement suggesting his leave from the agency and defending his policies.
Lawsuit Against the SEC, Signed by 18 Republican Attorneys General
The Fox News reporter revealed that the states allege that the SEC has imposed unconstitutional excessive and unfair regulation on the crypto industry, infringing on the state government’s right to regulate its own economy.
In a November 14 post via X, Terrett said that the lawsuit against the SEC is signed by 18 Republican Attorneys General.
The lawsuit details how the regulator has committed “gross government overreach” with its regulation by enforcement crusade against the $3 trillion industry.
The SEC has been taking harsh measures against important names in the industry including Uniswap, Consensys, Crypto.com, and others. In October, Crypto.com sued the regulator following a Wells Notice, alleging overreach in crypto regulation.
The official complaint note reveals the civil action taken against the US SEC, detailing how the regulator attacked the trillion-dollar crypto industry which has encouraged innovation, created jobs, and made financial services more accessible for millions of people throughout the country.
According to the complaint, the SEC has not respected its allocation of authority, but, with Congressional authorization, it sought to take away the regulatory authority of the states, enforcing its own measures and actions.
The complaint came shortly after the SEC Chair Gary Gensler released an official statement, suggesting that he may be leaving the agency.
Gensler Defended His Approach to Crypto Regulation
Yesterday morning, Gensler spoke at the Practising Law Institute’s 56th annual conference on securities regulation, and his statement sounded close to a “farewell speech,” as CNBC noted.
Gensler highlighted that the SEC is a remarkable agency, which he led since April 2021.
He said that it has been a great honor to serve with them, doing people’s work, and ensuring that the capital markets remain the best in the world.
He also reviewed his accomplishments at the agency, defending his policy and crypto approach. He said that the failure to police the crypto industry properly has resulted in significant investor harm, and highlighted that the vast majority of digital assets have yet to prove sustainable use cases.
While Gensler did not say clearly he was resigning, he did say that he is proud to have served with his SEC colleagues to protect the American families.
Meanwhile, J. Christopher Giancarlo, known as “Crypto Dad”, dismissed speculation that he is being considered to replace Gensler as the head of the Securities and Exchange Commission.
Yesterday, the former Chair of the US Commodity Futures Trading Commission (CFTC) shared a post via X to deny allegations that he was seeking the agency’s top job.
