Gary Gensler News: 18 US States Are Suing The SEC – is it Payback Time?

In an unexpected turn of events, a new SEC lawsuit, this time against the institution, has been initiated by 18 US states. The court case comes after the recent US election that saw Trump handed a second term and the discussion of the new cabinet, including a new SEC Chairman.

The US Securities and Exchange Commission has been cracking down on cryptocurrencies and exchange platforms, which motivated this case. The plaintiffs are accusing the chairman of unjustified use of power and unfairly prosecuting crypto businesses.

Let’s discover more about the Gary Gensler news and what will happen next in the US crypto market.

New SEC Lawsuit

On 14 November, a Kentucky Attorney General initiated the SEC lawsuit. Other state representatives joined the statement, and now Florida, Montana, Indiana, South Carolina, Iowa, Louisiana, Tennessee, Oklahoma, Kentucky, Arkansas, Texas, West Virginia, Kansas, Nebraska, Mississippi, Missouri, Ohio, and Utah have come together in a coalition to challenge the regulator’s actions.

The main claim was stated as the “unconstitutional overreach and unfair persecution of the crypto industry under the leadership of agency chief Gary Gensler.”

The case was presented in collaboration with DeFi Education Fund, a crypto advocacy expert who calls for a crypto-friendly financial environment and governmental approach.

The accusers highlight the unfair treatment of crypto platforms in the US and the unreasonable breach of Federal laws that entail state autonomy over local laws and regulations. Moreover, some voices demand that the chairman step down and initiate drastic regulatory changes.

Gary Gensler News for Crypto Exchanges

The SEC chair, Gary Gensler, has been heavily criticizing crypto exchange platforms and businesses, suing popular names in the industry like Ripple, Kraken, and Coinbase.

Many small DeFi and blockchain businesses were forced outside the country, and many brokerage firms stopped serving US citizens because of these restrictions.

The chairman recognizes BTC and ETH as decentralized commodities, while every other cryptocurrency is a security that must be registered at the SEC. Therefore, Gensler took eToro, Binance, Kraken, and Coinbase to court for trading unregistered securities.

Who Will Replace The SEC’s Chairman?

The Gary Gensler news comes shortly after electing Donald Trump as the new US president. There have been discussions about appointing new agency officials, including the SEC’s chairman.

Trump’s position on blockchain is highly bullish, and he is more likely to appoint a pro-crypto official as Gary Gensler’s replacement. The ex-president has vowed to improve the global DeFi and blockchain infrastructure and to make the United States the leader in Bitcoin adoption, mining, and development.

Conclusion

In breaking news, the SEC is being sued for overreaching its power and interfering with state regulatory independence. 18 US states came together against the SEC, demanding the chairman to resign.

The Gary Gensler news is considered a good change for crypto companies with the anticipated pro-blockchain approach of the new president. Now, all eyes are on the new successor.