Crypto Vs. Gensler: 18 States File Lawsuit Against SEC Over Alleged Industry Persecution
The cryptocurrency community has been criticizing U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler for months. Gensler’s aggressive approach to regulation has angered many in the industry, especially Ripple executives. today, Critics take Gensler to court They claimed the agency had “grossly overstepped its authority.”
According to Fox Business’s Eleanor Treat, 18 states Gensler’s management style has left them frustrated, which affects the crypto industry. The lawsuit is being led by Republican attorneys general, including Kentucky’s Russell Coleman, who believe the current SEC chairman is bullying the industry.
Lawsuit says Gensler “overstepped his authority”
The state lawsuits reflect growing dissatisfaction with Gensler’s approach to cryptocurrency regulation. According to Attorney General Coleman, the agency is trying to take the oversight of cryptocurrency enforcement out of the hands of states.
Exclusive: 18 US states have filed lawsuits @SECGov and its members, accusing them of unconstitutional overreach and unfair persecution #cryptocurrency Industry under the leadership of agency heads @garygensler.
The lawsuit was signed by 18 Republican attorneys general… pic.twitter.com/wxOovuIRQH
— Eleanor Terrett (@EleanorTerrett) November 14, 2024
Gensler’s “Law enforcement supervision” Removes states’ control over regulation and deprives them of the opportunity to shape economic policy. Lawyers further explained that the agency’s crackdown on cryptocurrencies is harsh, aggressive, and far removed from its original mandate.
According to the petitioners, Gensler’s management style was more about control than about upholding the law or protecting consumers. The lawsuit seeks to stop Gensler from aggressively attacking the industry and establish clear and established rules for stakeholders.
Gensler’s long-running feud with cryptocurrencies
The crypto industry currently views Gensler as an enemy. Upon becoming SEC chairman, Gensler immediately led investigations and inquiries into the most prominent cryptocurrency companies. He has long believed that many companies operate in a “legal gray area.”
Ripple Labs is the developer of XRP Long-running feud with SEC sale of its digital tokens. The regulator believes that the company violated the law by selling the token (XRP) without registering the token as a security.
Last year, Ripple Labs won a victory in court when U.S. District Judge Analisa Torres found that Ripple’s XRP was covered by the country’s securities laws when it was sold to institutional investors.
Gensler responds to encryption-related questions
Gary Gensler recently broke his silence, defending his record as SEC chairman in a speech last Thursday. He stressed that courts have consistently upheld the agency’s actions aimed at protecting investors, rejecting claims that the SEC lacks the authority to enforce securities laws.
However, with Republican Donald Trump winning the election, Gensler may still have some options. Trump has consistently expressed his support for Bitcoin and cryptocurrencies and has promised to succeed him as SEC chairman once he begins working in the Oval Office.
Featured image from Fortune, chart from TradingView
