Gensler’s Crypto War Backfires: 18 States Sue SEC for Federal Overreach

Gensler’s Last Stand

Gary Gensler, chair of the SEC, might be down to his final days in power. With a red wave sweeping the White House, he’s defending his draconian war on crypto—doubling down even as his regime crumbles around him.

In remarks delivered at the Practicing Law Institute’s Annual Institute on Securities Regulation, Gensler tried to justify his crusade against crypto, arguing that his aim was to make crypto firms “register and disclose” information on the 10,000+ tokens he claims fall under SEC control. According to him, the whole effort was about “investor protection” and “compliance.” But Americans aren’t buying it. They know this crackdown has little to do with “safety” and everything to do with federal control.

The SEC’s relentless attacks have cost crypto companies a staggering $426 million in legal battles. But it didn’t stop Gensler from implying that crypto’s main use is “speculative” or tied to “illicit activities.” In his world, every new crypto token is a threat, every blockchain a crime scene. And now, he’s under fire himself.

The States Strike Back

As Gensler spouted his “goodbye and thanks” remarks, a coalition of 18 states was preparing to make him pay for his federal overreach. The lawsuit, spearheaded by states like Nebraska, Texas, West Virginia, and Wyoming, accuses Gensler and the SEC of grabbing power over the crypto industry without Congressional approval. Their complaint is clear: the SEC has attempted to wrest control from the states, treating crypto like an outlaw rather than a breakthrough technology.

“The SEC has not respected this allocation of authority,” the lawsuit reads. “Instead, without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions.” This is about power, plain and simple. These states see the SEC for what it is: a power-hungry agency trying to stamp out financial freedom.

Trump’s Promise: Gensler’s Out on Day One

Gensler’s term officially runs through 2026, but Trump has made a promise to America’s crypto users: Gensler’s tenure won’t make it past day one of his administration. The law says removing him won’t be easy, but Trump’s already hinting at ways to bypass the red tape, even mentioning the use of recess appointments to install leaders committed to freedom, not federal interference.

Now, Gensler can give as many farewell speeches as he likes about his so-called “dedication” to protecting investors. But 18 states are reminding him—and the entire Biden administration—that the American people won’t accept this level of control over their financial future.

Gensler’s Legacy: A Failed Power Grab

Gensler’s final remarks were a nostalgic tribute to his staff, calling them “deeply mission-driven.” He even pulled out a personal story, crediting his parents, Sam and Jane Gensler, for trusting the securities markets. But let’s be clear: his legacy isn’t one of protection. It’s one of coercion. He brought government power to bear against every innovative voice in the financial system, trying to stifle a movement that millions of Americans believe in.

With this lawsuit, states are fighting back. With Trump’s return, we’re on the brink of a new era in which freedom—not control—guides America’s financial future. Patriots, the future of American finance isn’t in the SEC’s stranglehold. It’s in the hands of We the People.

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