18 U.S. state attorneys general jointly sue SEC and Gensler, protesting against "excessive expansion of power" in crypto regulation.

Recently, 18 states in the United States jointly filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and Chairman Gary Gensler, citing "government overreach" in their enforcement actions against the cryptocurrency industry.

18 States Jointly Sue, Protesting SEC's Abuse of Power and Erosion of State Authority

According to FOX reporter reports, the lawsuit was signed by 18 Republican attorneys general, detailing how the agency has severely overstepped government oversight by enforcing regulations on a $3 trillion industry, resulting in violations of each state's rights to regulate their economies.

Without congressional authorization, the SEC has unilaterally expanded its regulatory authority over the cryptocurrency industry through enforcement actions, attempting to strip state governments of their regulatory powers without respecting the division of powers.

Gensler Takes a Tough Stance, Upholding Anti-Crypto Policies

Despite facing pressure from the incoming Trump administration and the possibility of being replaced, Gary Gensler delivered strong statements at the Securities Regulatory Annual Conference on 11/14, stating that many crypto assets still lack long-term value and practical applications, which has had a negative impact on investors.

Potential Successors Emerge, New SEC Chairman Likely Pro-Crypto

Trump has publicly stated that if elected, he will replace Gensler and appoint a leader more supportive of the crypto industry. Current SEC Commissioner Mark Uyeda, who has criticized Gensler's "enforcement-first, regulation-second" approach to the crypto industry, is currently seen as a possible successor to Gensler. Another potential candidate is Dan Gallagher, former SEC commissioner and current Chief Legal Officer of Robinhood, a brokerage firm that actively fought against SEC's legal actions against Robinhood Crypto earlier this year.

The potential SEC Chairman under the Trump administration, Robinhood's Chief Legal Officer expected to succeed Gary Gensler

Industry Criticizes SEC Policies, Lawsuit Costs Reach $4.26 Billion

According to the Blockchain Association's statistics, since 2021, the SEC's enforcement actions against the crypto industry have forced companies to pay up to $4.29 billion in legal fees. Industry insiders widely believe that the lack of clear digital asset regulatory policies in the U.S. is one of the biggest challenges faced by American developers.

New Government Takes Office, Expectations Rise for Crypto Regulation

With Trump's election and the new government taking office in 2025, the market generally expects significant changes in the SEC's regulatory direction. The joint lawsuit by 18 states not only reflects the states' dissatisfaction with the federal agencies' unauthorized expansion of power but also highlights the industry's urgent need for reasonable regulatory direction. The market is also looking forward to the new SEC Chairman's direction on future crypto policies.

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