By    Elizabeth Lopatto , a reporter who writes about tech, money, and human behavior. She joined The Verge in 2014 as science editor. Previously, she

18 states want the SEC to stop enforcing crypto regulation

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2024-11-16 15:30:05

By Elizabeth Lopatto , a reporter who writes about tech, money, and human behavior. She joined The Verge in 2014 as science editor. Previously, she was a reporter at Bloomberg.

The US Securities and Exchange Commission wants to “unilaterally wrest regulatory authority away from the States” when it comes to crypto, according to a lawsuit from 18 states. These states want to halt the SEC’s enforcement actions, so they can manage crypto regulation instead. Also named as a plaintiff on the suit is the DeFi Education Fund, a special interest lobbyist.

Controversial SEC chair Gary Gensler is named in the suit, along with other SEC commissioners. Gensler’s treatment of crypto during his time as chair has made him a punching bag for the industry — and for Republicans such as president-elect Donald Trump.

There has been an ongoing turf war over crypto regulation. Until this point, the two major contenders were the SEC, and the crypto industry’s preferred regulator, the Commodities Futures and Exchange Commission. Led by Russell Coleman, the attorney general for Kentucky, the states have chosen to Leeroy Jenkins themselves into the fray.

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