This time, it’s not just companies going after the SEC — it's the states themselves. And that’s a whole new level! It’s one thing when a single company is upset, but when you have 18 states lined up against you, it’s no joke! So, what’s the issue here? The states accuse the SEC of overstepping its authority, seizing control over crypto regulation without Congress’s approval.

You might wonder why the states decided to take action only now. But given the expected warming towards the crypto industry with the arrival of a new president, the odds of winning this battle are significantly higher. It looks like the states smelled a potential victory and are eager to capitalize on it.

Among the leading states in this lawsuit are Tennessee, Ohio, and Texas. They claim the SEC undermined their authority by overreaching and stripping the states of their rights to regulate the industry within their own jurisdictions. In their view, Gary Gensler crossed the line by imposing strict enforcement measures that usurped powers traditionally reserved for the states.

Gary Gensler is accustomed to court battles. In fact, he often uses the strategy for setting new legal precedents. However, this time the tables have turned: the states decided to fight fire with fire and drag the SEC through the courts. And there’s no shortage of reasons. The violations are so blatant that even non-lawyers can spot them.
Gensler's aggressive tactics may have backfired, leaving him to deal with the consequences.
Instead of a dignified retirement, Gensler now has to strategize his defense.