Eighteen state attorneys general in the United States have jointly filed a lawsuit accusing the U.S. SEC of overstepping its regulatory bounds in the cryptocurrency space at the state level.

BlockBeats News, November 15th, FOX reporter Eleanor Terrett posted on social media, stating, "18 states in the United States have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and its commissioners, accusing them of unconstitutional overreach and unfair treatment of the crypto industry under SEC Chairman Gary Gensler's leadership."

The lawsuit, signed by 18 Republican state attorneys general, details how the agency has conducted "severe government overreach" through enforcement actions against the $3 trillion industry and infringed on states' regulatory authority over their economies."

Nebraska Attorney General Mike Hilgers stated, "Nebraska and Kentucky are co-leading a coalition of 18 states challenging the Biden-Harris administration's illegal and broad-based regulation of cryptocurrency. In the lawsuit filed in the U.S. District Court for the Eastern District of Kentucky, state attorneys general and other stakeholders accuse the U.S. Securities and Exchange Commission (SEC) of exceeding its authority."

Despite the Securities and Exchange Commission and its chairman taking previous actions and issuing public statements, the agency has still launched a regulatory offensive against crypto companies. The SEC has overstepped the authority granted by Congress, attempting to classify cryptocurrencies as investment contracts—such as stocks or bonds—subjecting them to SEC regulation.

In addition to Nebraska and Kentucky, the participating states include Arkansas, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, and West Virginia."

The 18 Republican state attorneys general are asking the court to declare that "digital asset transactions are not investment contracts" and issue an order to prevent the SEC from bringing charges in the future against "digital asset platforms that have not registered as securities exchanges, dealers, brokers, or clearing agencies."

According to the complaint, many states have already established their own regulatory frameworks for the crypto industry and have been encouraging industry growth.