A new lawsuit signed by 18 Republican Attorneys General accuses the US Securities and Exchange Commission (SEC) of unfair actions in previous cryptocurrency crackdowns. The lawsuit names the SEC and all five of its Commissioners.
However, two of these Commissioners were appointed by Trump, and one is also a strong supporter of cryptocurrency, making matters complicated.
New Lawsuit Against SEC
According to a remarkable discovery by journalist Eleanor Terrett, 18 US states have filed lawsuits against the SEC. This news appeared on the same day that SEC Chairman Gary Gensler spoke, tacitly admitting that he may be about to be removed from the Commission.
“Congress has repeatedly rejected proposals to give federal agencies broad regulatory authority over digital assets. The SEC does not respect this allocation of power. Instead, without Congressional authorization, the SEC has sought to unilaterally withhold regulatory authority from the States through a series of ongoing enforcement actions,” the lawsuit said.
All 18 states participating in this lawsuit achieved major Republican victories in the most recent elections. Each state’s attorney general signed the lawsuit, and all are members of the Republican Party.
In other words, it is safe to assume that the lawsuit is part of Trump’s broader initiative to reform cryptocurrency regulation. However, Trump may or may not be personally involved.
These states filed suit with the Eastern District of Kentucky, and the lawsuit names the SEC and all of its Commissioners. Oddly enough, that included “Crypto Mom” Hester Peirce, who was appointed by Trump. The civil lawsuit accuses the group of “egregious government overreach” in the SEC’s cryptocurrency crackdown.
However, there is no sign of the lawsuit’s likely success. The SEC has refuse comment on this case.
Ultimately, this lawsuit easily leads to pressure. Legally, Trump may have the ability to remove Gensler’s leadership of the Committee, but cannot remove him entirely. However, lawsuits like this one could encourage Gensler to resign before Trump takes office in January.
Also this past week, Terrett reported on new pro-cryptocurrency legislative efforts, plus pro-industry statements from a leading candidate for Treasury Secretary and Senate Majority Leader. new institute. America may be in a period of stagnation, but momentum is growing.