18 US states, including strongholds such as Texas, Florida, Kentucky, and Tennessee, have filed a lawsuit against the Securities and Exchange Commission (SEC) and its chairman Gary Gensler. The plaintiffs accuse the federal agency of exceeding its powers and taking actions that go beyond the legal framework for crypto regulation. The complaint highlights that the SEC, under the leadership of Gensler, has sought to appropriate regulatory powers that, according to the states, should belong to Congress or the state governments themselves.
Huge costs for the crypto industry
This lawsuit comes as the crypto community has already suffered heavy financial losses due to the actions of the SEC. According to the Blockchain Association, the various lawsuits filed by the agency have resulted in collective expenses of nearly $500 million for companies in the sector, which have found themselves forced to defend their activities in the face of a regulatory environment perceived as opaque and unpredictable. This situation weighs on startups and innovative projects, hindering the growth of an ecosystem already facing technical and economic challenges.
Criticism of the SEC’s strategy
The plaintiff states do not mince their words, accusing the SEC of conducting a series of coercive actions without legislative authorization. They denounce what they call a “unilateral takeover” of the regulation of digital assets. This legal conflict illustrates a growing tension between federal and local authorities over how to supervise this rapidly expanding sector. The states’ initiative aims not only to denounce practices they deem abusive, but also to assert the rights of the states to participate in the development of rules suited to the realities of the digital economy.
Resignation of Gary Gensler and Changes Ahead with Trump?
The case takes on major political dimensions as incoming President Donald Trump, who has already pledged to fire Gary Gensler, is about to take office. Trump has expressed his intention to appoint a SEC leader more favorable to the crypto industry, marking a potential change in the regulation of this sector.
This prospect fuels hope among blockchain participants that the new administration could adopt more conciliatory measures and encourage innovation without hindering the growth of emerging projects. Earlier in the day, the current SEC chairman, Gary Gensler, shared a statement suggesting that he is about to resign.
Gensler took advantage of this lengthy message to thank his loved ones, as well as his colleagues, stating that “it was a great honor to serve (the SEC) with them“.
Towards a redefinition of roles
The complaint filed by these states could redefine the distribution of responsibilities in the regulation of digital assets. This action marks a turning point in the fight for a more balanced framework between investor protection and support for innovation. The forthcoming verdict could have significant repercussions on the SEC’s strategy and on the future of the crypto industry in the United States.
