Seven US States Oppose SEC's 'Overreach' in Crypto Regulation

IconCryptoNewsTerminal Staff21 Jul, 2024

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Seven US States Oppose SEC's 'Overreach' in Crypto Regulation

The US Securities and Exchange Commission (SEC) is facing opposition from seven states over its regulatory approach to cryptocurrency. Iowa, Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma have filed an amicus brief, arguing that the SEC is overstepping its authority. Led by the Iowa Attorney General's office, the brief asserts that Congress has not granted the SEC the power to regulate cryptocurrency. The states contend that generic cryptocurrencies, such as Bitcoin, do not qualify as investment contracts under the Securities Act. This move highlights growing concerns among states about the SEC's aggressive stance on crypto regulation. The agency has recently initiated enforcement actions against several crypto companies, drawing criticism for its perceived overreach.

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