Multiple U.S. States Sue SEC, Accusing Gensler of Crypto Overreach

Eighteen U.S. states, spearheaded by Republican attorneys general, are taking legal action against the Securities and Exchange Commission, with SEC Chair Gary Gensler as their primary target.

As reported by Fox Business’s Eleanor Terrett, the states allege that Gensler’s leadership has veered into extreme “government overreach” that’s stifling the cryptocurrency sector.

The lawsuit accuses Gensler of adopting a “regulation by enforcement” strategy, which, according to the states, sidelines their authority over local economic matters. They argue this aggressive stance isn’t about safeguarding investors, but rather about exerting control over the industry.

Since stepping in as SEC chair, Gensler has pursued numerous enforcement actions against major crypto firms, asserting they operate in ambiguous legal territory.

This heavy-handed approach has drawn fierce opposition, with many in the industry now viewing him as a chief adversary. Amid rising calls for Gensler’s resignation and his recent controversial remarks, speculation over his future at the SEC continues to grow.