Biden's SEC Under Attack by 18 Republican States Over Crypto Policy
Date: 2024-11-15 Author: Oliver Abernathy Categories: IN WORLD
18 Republican states have filed a lawsuit against the SEC, arguing that the agency, led by Gary Gensler, violates the Constitution and federalism. According to the plaintiffs, excessive pressure on the crypto sector infringes on the rights of states to manage the economy. The lawsuit was filed with the support of the DeFi Education Fund, which advocates for fair policies in decentralized finance.
The SEC's "regulation by coercion" approach under the Biden administration has caused discontent. Instead of creating clear rules for crypto, the agency applies securities laws, which leads to legal uncertainty and stifles innovation.
Gary Gensler believes that crypto platforms are required to register with the SEC to protect investors from fraud. However, critics say his policies are only making it harder for the industry to grow.
President-elect Donald Trump has vowed to fire Gensler on his first day back in office. The attorneys general said in their lawsuit that Congress intentionally limited the SEC's authority over digital assets, leaving them to the states to regulate.
A change in the SEC's leadership could change the course of the case, but the future of the cryptocurrency sector in the U.S. remains uncertain.
