Attorney General Ken Paxton Sues Biden-Harris Administration for Unlawful Regulations …
Attorney General Ken Paxton, along with a coalition of 18 states, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and members of the Biden-Harris Administration. The lawsuit claims that the recent regulations imposed on cryptocurrencies by the Administration are unlawful and exceed the SEC’s legal authority.
The new rules require digital asset platforms to register with the SEC as securities exchanges, dealers, brokers, and clearinghouses, and comply with federal securities laws. However, these regulations are not supported by the existing statutory framework, which dates back to the Securities Act of 1933 and the Exchange Act of 1934. These laws do not address digital assets like cryptocurrencies, nor do they grant federal agencies the power to override state legislation on the matter.
In a statement, Attorney General Paxton emphasized that federal authorities in Washington should not dictate how states engage with cryptocurrency. He argued that the SEC’s broad jurisdiction over digital assets without congressional approval undermines states’ ability to create their own tailored regulations for the industry. This, in turn, stunts the development of innovative regulatory frameworks while replacing existing state laws designed to protect consumers within the digital asset sector.
The lawsuit highlights the need to maintain a balance of power between federal and state authorities to foster a thriving digital asset industry. By attempting to apply outdated federal securities laws to digital assets, the SEC may inadvertently harm the very individuals it aims to protect.
If you’d like to read the full filing, you can access it by clicking here.
