The post Attorneys General Challenge SEC’s Authority Over Crypto Exchanges Amid Concerns of Regulatory Overreach appeared on BitcoinEthereumNews.com.

A coalition of state attorneys general and the DeFi Education Fund has filed a lawsuit against the SEC, alleging regulatory overreach in enforcement actions against crypto exchanges. The legal action asserts the SEC’s regulatory approach to cryptocurrencies undermines state authority and exceeds its mandate as defined by Congress. According to the lawsuit, “The SEC’s sweeping assertion of regulatory jurisdiction is untenable,” emphasizing that digital assets should not be classified under federal securities laws. The SEC faces a lawsuit from state attorneys general and the DeFi Education Fund, challenging its regulatory authority over cryptocurrency exchanges. State Attorneys General Challenge SEC’s Authority Over Crypto In a significant development within the cryptocurrency landscape, a group of state attorneys general, alongside the DeFi Education Fund (DEF), has initiated legal proceedings against the U.S. Securities and Exchange Commission (SEC). This lawsuit, lodged in the U.S. District Court for the Eastern District of Kentucky, argues that the SEC has unlawfully overstepped its jurisdiction in targeting cryptocurrency exchanges with enforcement actions. The plaintiffs contend that the SEC’s so-called “crypto policy” is, according to the lawsuit, “unlawful executive action” that violates the Administrative Procedures Act. Key Arguments Against SEC’s Regulatory Framework One of the core arguments presented in the lawsuit is that digital assets should not be regarded as investment contracts as outlined by federal securities laws. The lawsuit places significant emphasis on a legal principle known as the major questions doctrine, which posits that federal agencies should refrain from adjudicating matters not explicitly delegated to them by Congress. While federal courts have previously interpreted this doctrine restrictively in SEC litigation involving cryptocurrencies, the current lawsuit aims to challenge this precedent through its unique position. The ramifications of this case could potentially redefine the boundaries of the SEC’s regulatory authority in the evolving crypto landscape. CEO of DeFi…

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Filed under: News - @ November 15, 2024 2:25 am