SEC, Gary Gensler Sued by 18 States Over Biden’s Crypto Crackdown

Ahead of an expected regulatory leadership transition following the election of Donald Trump, 18 states have filed suit against the Securities and Exchange Commission (SEC) and its commissioners, including Chairman Gary Gensler, over its crackdown on the crypto industry.

Filed Thursday, the suit from 18 states and their respective Attorneys General—all Republicans—along with the DeFi Education Fund, alleges that the regulator violated the U.S. constitution in its approach to regulating digital assets.

“Without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions targeting the digital asset industry,” the lawsuit, filed in a federal court in Kentucky, argues. “The SEC’s sweeping assertion of regulatory jurisdiction is untenable.”

The suit further alleges that the SEC knowingly defied standard procedure under Gensler’s leadership when it came to crypto, and so the agency intentionally avoided releasing any new crypto rules—as a means to avoid the alleged issues with its “regulatory land grab.”

Editor's note: This story is breaking and will be updated with additional details.