Eighteen state attorneys general in the United States have jointly filed a lawsuit, accusing the SEC of overstepping its authority in regulating cryptocurrencies at the state level.

BlockBeats reported that on November 15, FOX reporter Eleanor Terrett posted on social media stating, "Eighteen states in the United States have filed a lawsuit against the Securities and Exchange Commission (SEC) and its commissioners, accusing them of unconstitutional overreach and unfair treatment of the cryptocurrency industry under the leadership of SEC Chairman Gary Gensler. The lawsuit, signed by 18 Republican state attorneys general, details how the agency has engaged in "severe government overreach" through enforcement actions against the $3 trillion industry, infringing upon the states' rights to regulate their economies." Nebraska Attorney General Mike Hilgers commented, "Nebraska and Kentucky are jointly leading a coalition of 18 states challenging the Biden and Harris administration's illegal and extensive regulation of cryptocurrency. In the lawsuit submitted to the U.S. District Court for the Eastern District of Kentucky, the state attorneys general and other parties accuse the SEC of overstepping its authority. Despite the SEC and its chairman having previously taken action and made public statements, the agency has launched a regulatory assault on cryptocurrency companies. The SEC has exceeded the powers granted by Congress, attempting to classify cryptocurrencies as investment contracts—similar to stocks or bonds—thus placing them under SEC regulation. In addition to Nebraska and Kentucky, the participating states include Arkansas, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, and West Virginia." The 18 Republican state attorneys general are asking the court to declare that "digital asset transactions are not investment contracts" and to issue an order preventing the SEC from bringing future charges against "digital asset platforms that fail to register as securities exchanges, dealers, brokers, or clearing agencies."
 According to the complaint, many states have already established their own regulatory frameworks for the cryptocurrency industry and encouraged its development.

Eighteen state attorneys general in the United States have jointly filed a lawsuit, accusing the SEC of overstepping its regulatory authority over cryptocurrencies at the state level.