DES MOINES, IOWA (July 10, 2024) — Iowa Attorney General Brenna Bird today led a 7-state coalition in opposing the illegal attempt by the US Securities and Exchange Commission to regulate cryptocurrencies. SEC’s power grab may stop states from protecting their citizens from scams, and it hurts the free market. SEC’s policing of cryptocurrency will stifle innovation and devastate the cryptocurrency industry.
In 2023, Americans lost more than $4.6 billion to fake investment scams — more than any other reported scam category. That amount is a 21% increase from 2022.
States like Iowa have been on the frontlines in protecting scam victims and prosecuting criminal scammers. But now, the Biden SEC is attempting to abuse its power and put itself in charge of regulating cryptocurrency, bypassing state consumer-protection laws. Congress never gave the SEC power to regulate cryptocurrency, and there is no accountability to ensure the actions the SEC takes are legitimate and necessary.
“Scammers need to be held accountable,” said AG Bird. “The Biden SEC is trying to prevent states like Iowa from doing their job to hold robbers to the law and protect families from the dangers of cryptocurrency scams. This power grab will also hurt the free market and allow the SEC to take the regulatory reins over the cryptocurrency industry with no accountability. The SEC’s bypassing Congress to give itself new power is illegal, stifles innovation, and will let scammers off the hook.”
The States make the case that the SEC is violating the Administrative Procedure Act and Major Questions Doctrine. Unelected bureaucrats cannot bypass Congress to give themselves regulatory powers that belong to the states.
Iowa led the amicus brief and was joined by Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma.
Read the full amicus brief here.
