Attorney General Drummond is opposing an initiative by the U.S. Securities and Exchange Commission (SEC) to regulate cryptocurrencies, which he claims would prevent states from protecting their citizens from scams.
In 2023, Americans lost over $4.6 billion to fake investment scams, marking a 21-percent increase from 2022. States like Oklahoma have been active in safeguarding scam victims and prosecuting scammers. The SEC's proposed regulation would place the federal agency in charge of cryptocurrency oversight, bypassing state consumer-protection laws. According to Drummond, Congress has not granted the SEC authority to regulate cryptocurrency, raising concerns about accountability.
"This brazen federal overreach by the Biden Administration will significantly hinder Oklahoma from protecting our citizens from scams," Drummond stated. "Moreover, the SEC’s policing of cryptocurrency is certain to stifle innovation and devastate the growing industry. We will defend and protect our citizens from nefarious scammers, and we do not need the Biden Administration to play Big Brother in this regard."
States argue that the SEC's actions violate the Administrative Procedure Act and Major Questions Doctrine, asserting that unelected officials cannot grant themselves regulatory powers without Congressional approval.
Oklahoma has joined an Iowa-led amicus brief along with Arkansas, Indiana, Kansas, Montana, and Nebraska.
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