Attorney General Gentner Drummond has initiated legal action against the U.S. Securities and Exchange Commission (SEC), contesting what he describes as excessive regulatory measures on cryptocurrency by the Biden Administration. This lawsuit, filed in collaboration with attorneys general from 17 other states, is lodged in the U.S. District Court for the Eastern District of Kentucky.
The legal challenge arises amidst a backdrop where digital assets have become increasingly prevalent, with over 50 million Americans reportedly acquiring such assets. Bitcoin and other cryptocurrencies are now accepted by various businesses for transactions ranging from groceries to real estate.
Drummond argues that despite previous assurances from SEC Chair Gary Gensler, the commission is aggressively regulating crypto companies beyond its congressional mandate. He claims that the SEC's efforts to categorize cryptocurrencies as investment contracts subject to its regulation constitute an overreach.
"We should be encouraging this vibrant, new digital asset industry for its ability to innovate, create jobs and make financial services more accessible for millions of Americans," Drummond stated. "This regulatory overreach by the Biden Administration means to reach into the wallets of hardworking Oklahomans, and we will oppose it vigorously."
The complaint is also supported by attorneys general from Kentucky, Arkansas, Florida, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, Ohio, South Carolina, Tennessee, Texas, Utah and West Virginia.