Seven states in the United States join forces to challenge the SEC's excessive regulation of cryptocurrency

ChainCatcher news reports that, according to Bitcoin.com, seven states in the U.S. are jointly challenging the SEC's regulatory authority over cryptocurrencies. The coalition of seven states, led by Iowa Attorney General Brenna Bird, submitted an amicus brief on July 10 opposing the U.S. Securities and Exchange Commission's (SEC) attempt to regulate cryptocurrencies. The coalition includes Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma.

The coalition points out that the SEC's "power grab" will stifle innovation, harm the cryptocurrency industry, and exceed its authority. They argue that the SEC's regulatory actions not only hinder states' efforts to protect citizens from fraud but also undermine the free market. The Iowa Attorney General's office emphasizes that the SEC's actions to grant itself new powers bypassing Congress are illegal, stifling innovation and allowing fraudsters to go unpunished.

The brief also explains that the SEC has violated the Administrative Procedure Act and the Major Questions Doctrine, calling on the court to prevent the SEC from exceeding its authority. The seven-state coalition believes that typical cryptocurrencies do not qualify as investment contracts under the Securities Act of 1934.