State AGs Claim SEC Is Overreaching on Crypto Regulation
- State AGs filed a brief arguing the SEC exceeded authority in suing Kraken crypto exchange
- They say the SEC is expanding the definition of an "investment contract" too broadly
- This could preempt state consumer protection laws related to crypto assets
- The AGs argue cryptocurrencies are not automatically securities
- If the SEC wins, it may be able to override state regulations around crypto