Crypto: The SEC Accused of Stifling Innovation by Seven U.S. States

The SEC, sometimes more destructive than regulatory for the crypto industry, is once again at the center of debates. Accused of stifling innovation and harming a booming market, the SEC faces a coalition of seven U.S. states that vigorously defend the freedoms of the cryptocurrency industry. Let’s explore this legal battle and its implications for the future of crypto.

A coalition of states against SEC regulation

The shadow of the SEC’s hammer, already challenged by Judge Michael Wiles, often hovers over the cryptocurrency industry, and this time, seven U.S. states have decided to say “stop” to what they consider an excessive grip.

Led by Iowa Attorney General Brenna Bird, this coalition filed an amicus brief on July 10th, denouncing the SEC’s crypto regulation. Supported by the states of Arkansas (where bitcoin mining has become a blessed activity), Indiana, Kansas, Montana, Nebraska, and Oklahoma, these representatives argue that the SEC’s attempt to regulate cryptocurrencies is nothing less than an attack on market freedom and innovation.

“The SEC’s coup could prevent states from protecting their citizens against scams and harm free competition,” the statement points out.

For states like Iowa, which pride themselves on actively protecting their citizens from scams, the SEC’s actions are seen as a hindrance to their mission.

Local authorities fear that this centralized power will impede effective prosecutions against fraudsters while stifling a booming industry.

The impact of regulation on the crypto industry

The SEC’s initiative is far from unanimous, especially in states fervently defending the free market. For members of this coalition, this excessive regulation goes far beyond mere consumer protection.

It risks freezing innovation and causing economic devastation. In a market where innovation is key, the weight of restrictions could reduce crypto players to playing a secondary role on the global stage.

• Stifled innovation: Crypto players may be forced to migrate to more welcoming markets.
• Local economy at risk: States like Iowa, focusing on technological development and fighting scams, see these regulations as a direct threat.

The SEC’s regulation is not only seen as a hindrance but also as an obstructive force.

“Biden’s SEC is trying to prevent states like Iowa from doing their job,” the statement says.

Faced with an SEC accused of overstepping its boundaries, the battle is intensifying. U.S. states are mobilizing to defend a free and innovative crypto market, contesting regulation deemed excessive and destructive. And Donald Trump, for his part, seems to have understood the weaknesses of the current administration by betting on bitcoin.