Attorneys general of 18 U.S. states have filed a lawsuit accusing the SEC of overstepping its authority and "persecuting" the crypto industry

PANews reported on November 15 that according to Fox Business reporter Eleanor Terrett, 18 states in the United States have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and its commissioners, accusing them of unconstitutional excessive intervention and unfair "persecution" of the crypto industry under the leadership of SEC Chairman Gary Gensler. The lawsuit signed by 18 Republican state attorneys general in the United States details how the agency has carried out "serious government over-intervention" in the $3 trillion industry through law enforcement actions and infringed on the power of states to regulate their economies. 18 Republican state attorneys general in the United States asked the court to declare that "digital asset transactions are not investment contracts" and to issue an order to prevent the SEC from bringing 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 encouraged industry development.

Nebraska and Kentucky are co-leading an 18-state coalition challenging the Biden-Harris administration’s unlawful and extensive regulation of cryptocurrencies, according to Nebraska Attorney General Mike Hilgers. In a lawsuit filed in the U.S. District Court for the Eastern District of Kentucky, state attorneys general and others accuse the U.S. Securities and Exchange Commission (SEC) of exceeding its authority. Despite previous actions and public statements by the SEC and its chairman, the agency has launched a regulatory offensive against crypto companies. The SEC has exceeded its authority granted by Congress by attempting to classify cryptocurrencies as investment contracts so that they are regulated by the SEC. In addition to Nebraska and Kentucky, participating states include Arkansas, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, and West Virginia.