<p>The SEC, sometimes more destructive than regulatory for the crypto industry, is once again at the center of debates. Accused of stifling innovation and harming a booming market, the SEC faces a coalition of seven U.S. states that vigorously defend the freedoms of the cryptocurrency industry. Let’s explore this legal battle and its implications for the future of crypto.</p>
<h2 id="h-a-coalition-of-states-against-sec-regulation">A coalition of states against SEC regulation</h2>
<p>The <strong>shadow of the SEC’s hammer,</strong> already challenged by Judge Michael Wiles, often hovers over the cryptocurrency industry, and this time, <a href="https://news.bitcoin.com/7-us-states-unite-to-challenge-secs-crypto-overreach/" target="_blank" rel="noopener noreferrer nofollow">seven U.S. states</a> have decided to say “stop” to what they consider <strong>an excessive grip</strong>.</p>
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<p>Led by Iowa Attorney General Brenna Bird, <strong>this coalition filed an amicus brief on July 10th</strong>, denouncing the SEC’s crypto regulation. Supported by the states of Arkansas (where bitcoin mining has become a blessed activity), Indiana, Kansas, Montana, Nebraska, and Oklahoma, these representatives argue that <strong>the SEC’s attempt to regulate cryptocurrencies is nothing less than an attack on market freedom and innovation</strong>.</p> 
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<p>“<em>The SEC’s coup could prevent states from protecting their citizens against scams and harm free competition</em>,” the statement points out.</p>
<p>For states like Iowa, which pride themselves on <strong>actively protecting their citizens from scams</strong>, the SEC’s actions are seen as a hindrance to their mission.</p>
<p>Local authorities fear that <strong>this centralized power</strong> will impede effective prosecutions against fraudsters while stifling a booming industry.</p>
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<h2 id="h-the-impact-of-regulation-on-the-crypto-industry">The impact of regulation on the crypto industry</h2>
<p>The SEC’s initiative is <strong>far from unanimous</strong>, especially in states fervently defending the free market. For members of this coalition, this excessive regulation goes <strong>far beyond mere consumer protection.</strong></p>
<p>It risks <strong>freezing innovation</strong> and <strong>causing economic devastation</strong>. In a market where innovation is key, the weight of restrictions could reduce crypto players to playing a secondary role on the global stage.</p>
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 <li>Stifled innovation: Crypto players may be forced to migrate to more welcoming markets.</li>
 <li>Local economy at risk: States like Iowa, focusing on technological development and fighting scams, see these regulations as a direct threat.</li>
</ul>
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<p>The SEC’s regulation is not only seen as a hindrance but also as an obstructive force.</p>
<p>“<em>Biden’s SEC is trying to prevent states like Iowa from doing their job</em>,” the statement says.</p>
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<p>Faced with an SEC accused of overstepping its boundaries, the battle is intensifying. U.S. states are mobilizing to defend a free and innovative crypto market, contesting regulation deemed excessive and destructive. And Donald Trump, for his part, seems to have understood the weaknesses of the current administration <a href="https://www.cointribune.com/en/donald-trump-wants-to-make-bitcoin-an-economic-weapon/" target="_blank" rel="noopener noreferrer nofollow">by betting on bitcoin</a>.</p>

Crypto: The SEC Accused of Stifling Innovation by Seven U.S. States

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