Judge Pauses 18-State Lawsuit Against SEC, Saying It Could 'Potentially Be Resolved'
A 60-day stay has been granted in the case between state attorneys general and the SEC regarding crypto regulation, following the SEC's acknowledgment that the case could be resolved due to leadership changes. Both parties must submit a joint status update within 30 days. The lawsuit, filed by state attorneys general last November, accused the SEC of overstepping its authority by targeting crypto firms without proper rulemaking, claiming this violated the Constitution. The coalition seeks to prevent the SEC from suing digital asset firms based on unformulated interpretations of law. Paul Atkins, a known crypto advocate, has been confirmed as SEC Chair, replacing Mark Uyeda, who oversaw the dismissal of numerous cases initiated under former Chair Gary Gensler. The SEC has dropped lawsuits against various crypto firms and is reassessing how securities law applies to decentralized finance and NFTs. A dedicated crypto task force is developing clearer guidelines through formal rulemaking.
