18 US states sue SEC over chair Gary Gensler’s harassment of crypto industry

Eighteen states in the U.S. are officially fed up with the Securities and Exchange Commission, and they’re aiming their frustration right at SEC Chair Gary Gensler. That’s according to Fox Business journalist Eleanor Terrett.

These states, led by Republican attorneys general, just hit the SEC with a lawsuit, accusing Gensler and his team of “gross government overreach” that’s strangling the crypto industry. They claim Gensler’s SEC is bullying crypto businesses, leaving a massive question mark over whether he’s enforcing the law or just acting like a regulator on a warpath.

The lawsuit points out that Gensler’s “regulation by enforcement” approach steps all over states’ rights to oversee their economies. These attorneys say Gensler’s crackdown is so intense it’s taken the SEC’s original mandate and twisted it into something far more aggressive.

They argue that his hardline stance against crypto is more about control than protecting investors or upholding the law. This lawsuit aims to pull the reins on Gensler’s attempts to regulate the industry through lawsuits and threats instead of clear, established rules.

For the crypto industry, Gensler is public enemy number one. Since taking over the SEC, he’s led countless enforcement actions against big crypto players, claiming they operate in legal gray zones. This comes as expectations of a resignation from Gensler continues to grow, especially with his recent statement and Trump’s election win.