Krutika Adani
Led by Kentucky AG Russell Coleman, 18 states are suing the SEC, claiming the agency’s approach is overreaching and undermines state authority in crypto regulation.
AGs from major states like Florida, Texas, and Tennessee are pushing back.
States argue that SEC Chair Gary Gensler’s broad classification of most cryptos as securities is excessive, affecting companies like Coinbase and Ripple.
Notable political figures like Tennessee Senator Bill Hagerty back the lawsuit, supporting state-controlled crypto regulation over federal mandates.
If states win, we might see major changes, with states like Oklahoma and Iowa gaining greater control over crypto policies, potentially fostering clearer, innovation-friendly rules.