Attorneys General from 18 states in the United States have initiated a lawsuit, accusing the SEC of overstepping its regulatory authority and "persecuting" the cryptocurrency industry.

PANews, November 15 — According to Fox Business reporter Eleanor Terrett, 18 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 unjust "persecution" of the crypto 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 "serious government overreach" through enforcement actions against an industry worth $3 trillion, infringing upon states' powers to regulate their economies. 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 filing charges in the future against "digital asset platforms that fail to register as securities exchanges, dealers, brokers, or clearing agencies." According to the complaint, many states have already developed their own regulatory frameworks for the crypto industry and have encouraged its growth.

According to Nebraska Attorney General Mike Hilgers, Nebraska and Kentucky are jointly leading a coalition of 18 states challenging the Biden-Harris administration’s illegal and extensive regulations on cryptocurrencies. In the lawsuit filed in the U.S. District Court for the Eastern District of Kentucky, the state attorneys general and other parties accuse the SEC of exceeding its authority. Despite the SEC and its chairman previously taking action and issuing public statements, the agency has launched a regulatory assault on crypto companies. The SEC has exceeded the authority granted by Congress, attempting to classify cryptocurrencies as investment contracts to bring them under its 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.

Attorneys General from 18 U.S. states sue the SEC, accusing it of overstepping its regulatory authority and "persecuting" the cryptocurrency industry.