Tensions are growing between the Securities and Exchange Commission (SEC) and the crypto industry in the United States. In an unprecedented move, eighteen US states have just filed a complaint against the SEC and its president Gary Gensler, whom they accuse of abuse of power and unfair persecution of the crypto industry.
- Tensions between the SEC and the crypto industry have reached unprecedented levels thanks to a complaint filed by eighteen US states accusing the body of abuse of power.
- Under the leadership of Chairman Gary Gensler, the SEC has stepped up its legal action against cryptocurrency companies, sparking controversy over regulatory enforcement.
The War on “Coercive Regulation” and Cryptocurrencies
The finding, uncovered by journalist Eleanor Terrett, points to growing frustration among states with the SEC’s regulatory methods under Gensler.
The complaint, signed by the attorneys general of eighteen conservative-leaning states, accuses the SEC of “ a blatant excess of power » in its approach to regulation through the app. They argue that the SEC’s actions are a violation of states’ rights to regulate their own economies. At the heart of the allegations lies the fact that the SEC has chosen to pursue the crypto industry by taking targeted legal action, often without providing clear guidance to companies in the sector.
Gary Gensler, sworn enemy of cryptocurrencies
We remind you that under Gensler’s presidency, the SEC intensified its prosecution of cryptocurrency companies, a sector whose value at its peak reached nearly $3 trillion.
Many players in the industry condemn the ” witch hunt » and criticize Gensler for trying to stifle the development of this market by not providing a precise regulatory framework. The “app regulation” model has already cost crypto platforms and projects dearly, forcing some to close or go into exile abroad to escape US restrictions.
States in the clutches of the SEC?
The participating attorneys general, representing states including Texas, Florida, Indiana and Nebraska, condemn what they perceive as excessive federal interference in local economic management. In their complaint, they point out that the SEC’s approach prevents states from enforcing them regulatory rights in their own markets. In other words, they argue that the SEC’s actions are overstepping its federal mandate and stifling states’ economic freedom.
The complaint could mark a turning point in the relationship between the crypto industry and regulation in the United States. With pressure mounting for Gensler to leave his post — especially since the recent election victory of Donald Trump, who has promised to replace him — and even more so tonight. The SEC president actually hinted in his speech that he was potentially going to resign.