SEC Chair Gensler hints at resignation amid lawsuit from 18 states accusing the regulator of unlawful overreach

In a filing on Thursday, 18 states, along with the DeFi Education Fund, issued a lawsuit against the Securities and Exchange Commission (SEC), alleging that the regulator's crackdown on the crypto industry has been unlawful and unconstitutional. Meanwhile, SEC Chair, Gary Gensler, released a statement that hinted at a possible resignation before the end of his tenure after heavy scrutiny.

DeFi Education Fund and 18 states sue SEC, Gary Gensler hints at resignation

18 states have initiated a lawsuit against the Securities and Exchange Commission (SEC) and its five commissioners, alleging unconstitutional overreach and unfair treatment of the cryptocurrency sector under Gary Gensler's administration, according to Fox Business's Eleanor Terrett.

This legal action, supported by the DeFi Education Fund, claims that the SEC's regulatory approach is detrimental to the industry. 

The state attorneys who collaborated in the filing include Kentucky, Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma, and Florida.

The complaint emphasizes concerns regarding the agency's enforcement actions and regulatory stance toward cryptocurrencies. It also seeks a court order to prevent the SEC from filing future charges requiring digital asset platforms facilitating secondary transactions to register as securities exchanges, dealers, brokers, or clearing agencies.

"DeFi and crypto broadly will make the digital economy more accessible, efficient, interoperable, dependable, and consumer-focused. The SEC currently stands as a barrier to realizing this promise," the DeFi Education Fund wrote. 

The decision to sue the SEC reflects a growing acceptance of cryptocurrency in these states and a disdain for the regulator's approach.

Meanwhile, SEC Chair Gary Gensler may be considering stepping down from office, according to an official statement he released earlier today.

Gensler issued the statement on Thursday following the Practicing Law Institute's annual Institute on Securities Regulation.

"I've been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance," Gensler said.

If true, Gensler's potential resignation may have been fueled by factors such as Trump's victory in the recent US presidential election. The President-elect had vowed to fire Gensler during his campaigns.