According to a report by CoinDesk, multiple U.S. state attorneys general believe that the U.S. Securities and Exchange Commission (SEC) exceeded its authority when it sued the cryptocurrency exchange Kraken, arguing that the agency is trying to assert jurisdiction that should belong to the states.
State law enforcement officials from Montana, Arkansas, Iowa, Mississippi, Nebraska, Ohio, South Dakota, and Texas, on Thursday (29th), along with some industry lobbyists and other participants, submitted a joint amicus brief on the SEC’s lawsuit against Kraken. The attorneys general argued that the lawsuit filed by the SEC could even harm consumers, as they believe the regulatory agency is expanding the definition of “investment contracts” and asserting that cryptocurrencies “are not necessarily securities.”
This document echoes some arguments made by Kraken and other cryptocurrency companies, pointing out that the stance of these states is not to support the exchange Kraken, but to oppose the SEC’s actions.
The document states:
The document points out that cases from various states have historically helped clarify the definition of investment contracts. Furthermore, if the SEC prevails, it could preempt consumer protection laws in the states and state regulations concerning cryptocurrencies.