18 U.S. states, including Nebraska, Texas, and Ohio, have filed a lawsuit against the SEC and its Chairman, Gary Gensler. The states accuse the SEC of overstepping its authority, claiming it has been taking regulatory control over crypto without approval from Congress.Â
The lawsuit, led by states like Nebraska, Tennessee, Texas, and Ohio, claims that the SEC has bypassed Congress and tried to take regulatory control away from the states through its enforcement actions.
The Blockchain Association highlights that the SEC’s legal actions against crypto companies have cost the industry $426 million in litigation fees since 2021. Many crypto leaders criticize the SEC for lacking a clear and consistent policy, which they say is holding back innovation in the U.S.
As the 2024 election results are expected to trigger changes in leadership, some investors hope for a shakeup at the SEC. Gary Gensler’s leadership is under fire, and SEC Commissioner Mark Uyeda, known for his criticism of Gensler’s enforcement-heavy approach, is among those considered as his potential replacement.
Despite the growing pressure, Gensler remains firm in his stance. In a November 2024 speech, he reiterated his concerns about crypto, stating that while some assets are speculative or used for illicit activities, most have yet to prove their value for long-term use.
This ongoing legal battle underscores the tension between regulators and the growing crypto industry. Investors and developers are hoping for clearer regulations to foster innovation and growth in the U.S. crypto space.
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