A coalition of states has filed an amicus brief challenging the SEC’s authority over crypto regulation, arguing that the agency’s overreach hinders innovation and state-level protections.
Points
- Coalition of states files an amicus brief against SEC’s regulatory overreach.
- States claim SEC’s actions hinder innovation and violate their jurisdiction.
- The coalition argues for the judiciary to intervene and curb SEC’s over-zealousness.
- SEC’s approach criticized for being anti-market and exceeding legal framework.
A coalition of states has united against the SEC, filing an amicus brief on July 10 challenging the agency’s authority over cryptocurrency regulation. The states argue that the SEC’s regulatory overreach hinders innovation and infringes on their jurisdiction to protect residents from fraud and scams.
The Iowa Attorney General’s Office, a key respondent in this matter, claims that the SEC’s actions are unlawful, accusing the agency of operating extra-legislatively to assume new competencies. Critics within the coalition argue that the SEC’s overreach is detrimental to the free market and hampers state efforts to protect their citizens.
The coalition’s brief calls for the judiciary to intervene and curb the SEC’s over-zealous approach, which they describe as anti-market and exceeding the legal framework of regulation. The states emphasize the importance of maintaining statutory constraints introduced by Congress and urge the court to uphold these limitations to protect their jurisdictions.
SEC Commissioner Hester Peirce has also voiced criticism of the agency’s regulatory approach, advocating for a focus on enforcement measures rather than overregulation. Peirce’s stance aligns with the industry’s growing sentiment that the SEC’s actions are stifling innovation and partnerships within the crypto space.
Despite recent SEC actions against entities like Hiro and Paxos, the industry and state actors remain resistant to the agency’s regulatory methods. The coalition’s amicus brief represents a significant challenge to the SEC’s authority, highlighting the ongoing power struggle over crypto regulation.
解説
- The coalition of states’ challenge against the SEC underscores a significant regulatory power struggle in the cryptocurrency sector.
- State-level authorities argue that the SEC’s overreach infringes on their jurisdiction and hinders innovation.
- The coalition calls for judicial intervention to ensure regulatory actions remain within legal boundaries.
- SEC Commissioner Hester Peirce’s criticism of the agency’s approach adds weight to the argument for more balanced and enforcement-focused regulation.
- This legal challenge could have far-reaching implications for the future of cryptocurrency regulation in the United States.