Eighteen state attorneys general in the United States have announced a lawsuit against the country's Securities and Exchange Commission (SEC). The lawsuit focuses on the regulation of cryptocurrencies and the alleged interference by the SEC that prevents states from enforcing their own regulations.
Among the plaintiff states are Kentucky, Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma, and Florida. All the attorneys general from these states belong to the Republican Party.
The lawsuit, also directed against the five commissioners of the SEC, argues that the federal agency has initiated a regulatory process against cryptocurrency companies. It is claimed that the SEC has exceeded its Congressional mandate and is attempting to classify cryptocurrencies as investment contracts subject to the Commission's regulations.
"The SEC exceeded its Congressional authorization and is trying to classify cryptocurrencies as investment contracts (like stocks or bonds) that are subject to the Commission's regulation," stated the Government of Kentucky in a statement. Kentucky Attorney General Russell Coleman expressed that while the residents of the state wish to access cryptocurrencies to protect themselves against inflation, "the Biden-Harris Administration is illegally suppressing cryptocurrencies."
"Coleman added that, along with conservative attorneys general from across the country, they are fighting to prevent the federal government from reaching the wallets of residents both physically and digitally."
