Republican States' Attorneys General Sue SEC, Gensler Over Crypto 'Overreach' (foxbusiness.com)
- Reference: 0175476271
- News link: https://news.slashdot.org/story/24/11/15/1324221/republican-states-attorneys-general-sue-sec-gensler-over-crypto-overreach
- Source link: https://www.foxbusiness.com/politics/18-states-sue-sec-over-unconstitutional-overreach-digital-assets
The lawsuit, led by Kentucky Attorney General Russell Coleman, alleges the SEC has [1]exceeded its statutory powers by attempting to assume broad regulatory control over digital assets without congressional authorization. The complaint argues the agency's actions infringe on states' rights to develop their own cryptocurrency regulations and harm consumers by imposing ill-fitting federal securities laws on digital assets.
Speaking at a legal conference Thursday, Gensler [2]defended the agency's approach , citing consistent court support for SEC enforcement actions in cryptocurrency cases. The regulatory landscape appears set for change following President-elect Trump's victory. Trump, who previously dismissed cryptocurrency as a "scam," has pledged to make the U.S. the "crypto capital of the planet" and remove Gensler.
[1] https://www.foxbusiness.com/politics/18-states-sue-sec-over-unconstitutional-overreach-digital-assets
[2] https://www.sec.gov/newsroom/speeches-statements/gensler-remarks-pli-s-56th-annual-institute-securities-regulation-111424
this != this (Score:5, Funny)
CRYPTO D00DS: This is a currency market.
SEC: Oh? We're charged with regulating currency markets.
CRYPTO D00DS: Not like that.
Re: (Score:1)
Good bot!
Re: MAGAtard! (Score:2)
Hey know, mentally disabled people are actually decent human beings .
Re: (Score:2)
where I live crypto is not a currency in eyes of the law
I am curious how this will be handled (Score:2)
Based on the previous Trump administration, I expect regulatory agencies to be broken and run by Trump loyalists who will do what they're told regardless of rules on the books.
So .. Trump does occasionally try to suck up to crypto bros. Will he weigh in and force a particular outcome, or will the bureaucracy function because he's moved on and will ignore it?
Re: (Score:2)
Trump is now effectively a crypto bro himself, although he personally doesn't know anything about it and his kids know barely more.
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> Trump is now effectively a crypto bro himself
You just made me shudder and throw up a little in my mouth.
For a moment, I envisioned crypto "Trumpcoin" -- a gold medallion with his self-satisfied smirk on one -- no, both sides. Heads or heads? Sold as a collectible at its current crypto-market value.
Yeah, I know, [1]they exist already, bigly. [google.com]
[1] https://www.google.com/search?sca_esv=884896eda14e76c3&q=trump+commemorative+coin&udm=2&fbs=AEQNm0Aa4sjWe7Rqy32pFwRj0UkWxyMMuf0D-HOMEpzq2zertRy7G-dme1ONMLTCBvZzSlhEjTPx-bvxK8WZAYFqhMlnDLpq_pUL8R0VlJUJXUbyOqCW792IPP00Lxbz9NSaCDensF_sHWtqY8vq9GB5hUfkly60WN96-5Nz1ZmXtP-03_751ixkrtffihv2rQ886oSvG3YeY2-bt6bhvaJSZ4wPL2GN2A&sa=X&ved=2ahUKEwjRkPvb4t6JAxXSMDQIHdnLD9IQtKgLegQIGBAB&biw=1673&bih=901&dpr=1
Re:I am curious how this will be handled (Score:5, Insightful)
> Based on the previous Trump administration, I expect regulatory agencies to be broken and run by Trump loyalists who will do what they're told regardless of rules on the books.
> So .. Trump does occasionally try to suck up to crypto bros. Will he weigh in and force a particular outcome, or will the bureaucracy function because he's moved on and will ignore it?
Based on the way he's going about cabinet appointments, I assume he'll appoint Sam Bankman Fried in the newly created position of Government Crypto Oversight Tsar to take care of this whole issue.
Is this really good for crypto? (Score:4, Insightful)
I suppose this will make bitcoin shoot up, but is it really good for crypto? For it to go mainstream, people want protections against being swindled, robbed, and blackmailed. Upfront maybe they don't but letting it run wild is going to result in a steady stream of stories about people who got victimized. You can sneer at them, but doesn't it erode your confidence about putting your own, hard-earned money into crypto?
Re: (Score:1)
> people want protections against being swindled, robbed, and blackmailed
Those are all illegal under States' laws.
In a Constitutional Republic a Federal nanny state may not assume additional powers not allowed to it because somebody might be worried.
Re:Is this really good for crypto? (Score:4, Insightful)
Well guess what, it will all be legal under the Trump regime, and the States laws won't mean anything, as decreed by the High Trump Court.
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How is it not a security? I don't see myself trading in it if there are no rules about insider trading, wash trading, rugpulls...
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What happens when a state cryptocurrency is traded across state borders? It seems to me the feds will have something to say about it then.
Mark my words (Score:5, Informative)
This is going to get out of hand. It's going to make its way into the broader economy and into your 401k and you're not going to like it when it does.
The only inherent value in crypto is its utility in money laundering and Ponzi schemes. It is not a good payment facilitator because it requires way way way more computing power and therefore expensive electricity than a simple banking system like we have now.
Now the risk was always that governments were going to finally crack down on crypto and the crimes there in. Without the election in America when that's basically impossible now.
But those are crimes for a reason and the probability of a major savings and loan style crash is now the main risk. Imagine for example if the banks did what they did in 2008 with mortgaged back securities but replaced mortgages with pretend money. Unlike 2008 where the bleeding eventually stopped because there were houses you would have pretend money that is completely and genuinely worthless. There is absolutely no bottom to that crash.
What I'm saying is fasten your seat belts it's going to be a bumpy ride. we have had just enough regulation and oversight to keep the worst from happening and all of that is about to go out the window. It's like how we don't have major problems with our ozone and everyone thinks that means we don't have to worry about it but we did a ton of stuff to fix the ozone layer...
It's the classic problem that nobody gets a ticker tape parade for stopping a disaster.
Re:Mark my words (Score:5, Interesting)
"The only inherent value in crypto is its utility in money laundering and Ponzi schemes."
That's an unfair characterization. It's also good for illicit trafficking on the dark web and ransomware.
Re: (Score:2)
> Unlike 2008 where the bleeding eventually stopped because there were houses you would have pretend money that is completely and genuinely worthless
Even the 2008 crisis [1]could've been avoided, [pbs.org] if it hadn't been for a clash of personalities:
> early warnings of the crash, reveals an intense battle among high-ranking members of the Clinton administration, and uncovers a concerted effort not to regulate the emerging, highly complex, and lucrative derivatives markets, which would become the ticking time-bomb within the American economy.
[1] https://www.pbs.org/wgbh/frontline/documentary/warning/
It was more a systemic issue (Score:2)
than an individual one. I mean, what you're describing isn't really a clash of personalities so much as "elements in the Clinton administration wanted to do risky deregulation and other, smarter or less corrupt people didn't want to take those risks".
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> what you're describing isn't really a clash of personalities so much as "elements in the Clinton administration wanted to do risky deregulation and other, smarter or less corrupt people didn't want to take those risks".
The summary doesn't go into details, but essentially someone with knowledge of what was coming (I don't recall her name at the moment) tried to educate the powers that be about the dangers of the derivatives market, but since Clinton didn't get along with her, she never was put in any position of power or influence for her warnings to ever even be considered.
Note that it's been years since I watched that, so there's a possibility I'm mixing it with another documentary, but I do recall this scenario occurrin
Re: (Score:2)
A direct cause of the ARM A meltdown was the repeal of the Glass Steagall act by Bill Clinton. This was a gift to the banking industry by Bill and in my opinion was a marker of the shifting of the DNC/democratic party to what they are today. There were protections in place before this happened that would have prevented this from happening.
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How about how Trump and his idiotic tax cuts for the very wealthy have caused the national debt to go through the roof. Aren't Republicans supposed to care about this stuff?
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Given who just got elected... I honestly would prefer China running things, they at least give results in exchange for the political suppression. Here, the US will get the reichwing suppression and none of the results. Becoming a Chinese protectorate may be a good idea for several states, to shield them from the reich wing in America.
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What's to worry about my 401k....I can always count on Social Security when I retire in another 25ish years right..............
(I'm going to have to work until I'm dead aren't I).
can't they just say Interstate commerce (Score:2)
Tough shit.
Re:can't they just say Interstate commerce (Score:4, Insightful)
Yes, the administration can. Which is exactly what it is. This is no different than the SEC regulating the financial markets. If people are claiming that crypto can be used as cash, can be traded, and there is an entire industry built around it, the SEC can regulate it.
If these AGs had a wit of intelligence about them, they would know this is how inflation happened in the early days of our country. Every state had its own currency and the value of the state currency was dependent on a multitude of issues including how far from the state you were when trying to exchange their currency.
But apparently, due to the lack of basic education in this country, people don't know the history of our country and why things are the way they are. Considering how inept the Supreme Court when it comes to Constitutional issues, this isn't surprising.
Re: (Score:2, Interesting)
It's possible Congress can.
An executive agency definitely may not.
That's the whole point of the /Virginia/ case and the Major Questions Test.
We're in an odd position now where the people who want unlimited federal executive power, in general, have to think about Trump wielding it.
The Biden/Harris SEC has been flagrantly flouting the /Virginia/ decision, running totally amok of the Law.
Gensler should be arrested.
All laws are "overreach" to criminals. (Score:3, Insightful)
Republicans love every form of fraud they've ever met, but they have a special jones for ones that transfer wealth from average fools to wealthy pigs.
Re:All laws are "overreach" to criminals. (Score:4, Interesting)
> Republicans love every form of fraud they've ever met, but they have a special jones for ones that transfer wealth from average fools to wealthy pigs.
The next bubble is now officially started, this one might make the subprime bubble look like a momentary burp when the crypto bubble bursts.
Re: (Score:3)
Then they'll demand bailouts, robbing value from real currencies to feed the crooks who pump-and-dumped the fake ones.
Scammers gonna scam (Score:2)
I love how the entire Republican Party has been turned into an apparatus for supporting cons and scams.
You just can't make this shit up.
Re: (Score:3, Insightful)
>> Trump, who previously dismissed cryptocurrency as a "scam," has pledged to make the U.S. the "crypto capital of the planet" and remove Gensler.
> ... after Trump was suitably compensated for doing so by crypto industry lobbyists.
Addendum: Trump's reversal also came after it was explained to him how it can more easily be used for money laundering.
Re:Transactional policies (Score:4, Insightful)
>>> Trump, who previously dismissed cryptocurrency as a "scam," has pledged to make the U.S. the "crypto capital of the planet" and remove Gensler.
>> ... after Trump was suitably compensated for doing so by crypto industry lobbyists.
> Addendum: Trump's reversal also came after it was explained to him how it can more easily be used for money laundering.
The USA is astoundingly corrupt.
Re: (Score:2)
I would love to disagree with you, but we elected a convicted rapist and a felon who attempted an insurrection as our president. If the shoe fits.
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Small factual correction: Convicted felon, un-convicted rapist.
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Judge clarifies: Yes, Trump was found to have raped E. Jean Carroll
[1]https://www.washingtonpost.com... [washingtonpost.com]
[1] https://www.washingtonpost.com/politics/2023/07/19/trump-carroll-judge-rape/
Re: (Score:2)
That's not a conviction. In the criminal justice system, "convicted" is a term of art with a specific meaning. Civil liability for a crime is a different standard . The evidence is clear, the legal conclusions are clear, but they aren't a conviction. That's why I agree with the "rapist" part, but objected to "convicted".
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> That's not a conviction. In the criminal justice system, "convicted" is a term of art with a specific meaning. Civil liability for a crime is a different standard . The evidence is clear, the legal conclusions are clear, but they aren't a conviction. That's why I agree with the "rapist" part, but objected to "convicted".
You can try to paint a big yellow smiley on the fact that it wasn't criminal court but fact remains that a court of law found that Trump had raped that woman and that says more about the content of his character and that of those who voted for him than anything else.
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Um, if I was trying to polish that turd, I probably wouldn't say that he is, in fact, a rapist.
I was only saying the actual words I was saying.
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You can (rightly) object to the adjective "convicted" but the fact remains that a court found he was a rapist.
Adjudicated rapist. How's that? That adjective has become common in reports of the E. Jean Carroll trial(s).
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> Judge clarifies: Yes, Trump was found to have raped E. Jean Carroll [1]https://www.washingtonpost.com... [washingtonpost.com]
Yes, but he was found liable by a preponderance of the evidence, not convicted beyond a reasonable doubt.
I mean, I have no doubt that he did it, and many times, but "convicted" carries a very specific meaning, and Trump hasn't been convicted of rape, or sexual assault. Could he be? Maybe. "Beyond a reasonable doubt" is a pretty high standard, and hard to reach unless there is evidence beyond the victim's testimony. The evidence in the E. Jean Carroll case could not support a conviction, I don't think,
[1] https://www.washingtonpost.com/politics/2023/07/19/trump-carroll-judge-rape/
Re: (Score:2)
> I would love to disagree with you, but we elected a convicted rapist and a felon who attempted an insurrection as our president. If the shoe fits.
Remarkably enough, if you are not American, that is actually kind of uplifting because whenever I think my own country's politicians are astoundingly corrupt I just take one look at the USA and am instantly reminded that ours are complete and utter dilettantes by comparison. That being said I don't envy you guys of your fearless leaders, not even the MAGA hats.