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18 states want the SEC to stop enforcing crypto regulation

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In which various government bodies fight over “permissionless” assets | Illustration by Alex Castro / The Verge

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...

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