States Challenge SEC Over Crypto Regulation

Eighteen states are taking legal action against the Securities and Exchange Commission (SEC) regarding its regulatory approach to cryptocurrency. Led by Kentucky, the lawsuit alleges that the SEC has unconstitutionally expanded its authority without congressional approval, infringing on states' jurisdiction over digital assets. The suit claims that under Chairman Gary Gensler, the SEC has deliberately avoided establishing clear rules in order to assert control over the crypto industry, which has stifled its growth. Kentucky's Attorney General emphasized that this legal action aims to prevent the federal government from overreaching and to promote a healthier regulatory environment for the burgeoning cryptocurrency market.