Republican State AGs and DeFi Lobby Sue SEC Over Crypto Enforcement Actions
A lawsuit has been filed by state attorneys general and the DeFi Education Fund against the U.S. Securities and Exchange Commission (SEC) in the U.S. District Court for the Eastern District of Kentucky. The suit claims the SEC is overstepping its authority by enforcing actions against crypto exchanges, labeling its crypto policy as "unlawful executive action" that violates the Administrative Procedures Act. The lawsuit argues that digital assets are not investment contracts under federal securities laws and that the SEC's actions infringe on states' rights to regulate the industry. It invokes the major questions doctrine, asserting that federal agencies should not address issues not explicitly assigned by Congress. SEC Chair Gary Gensler stated that the agency's approach aims to protect investors from harm in the crypto market. Kentucky Attorney General Russell Coleman emphasized the need for access to cryptocurrency for financial freedom, criticizing the Biden-Harris Administration's regulatory stance.
