FRANKFORT, Ky. (Nov. 14, 2024) – Attorney General Russell Coleman announced today Kentucky is leading a 18-state coalition to challenge the Biden-Harris Administration’s unlawful and sweeping regulations of cryptocurrency. In a lawsuit filed in the U.S. District Court for the Eastern District of Kentucky, the attorneys general and other parties sued the U.S. Securities and Exchange Commission (SEC) for brashly overstepping its authority and preventing states like Kentucky from enforcing their own crypto laws.
Recent estimates show roughly one in five Americans – more than 50 million people – has acquired a digital asset. More U.S. businesses now accept Bitcoin and other digital assets as payment for anything from groceries to airline tickets to real estate.
Despite previous actions and public statements from the SEC and its Chair Gary Gensler, the Commission launched a regulatory assault against crypto companies. The SEC overstepped its authorization from Congress and is attempting to classify cryptocurrencies as investment contracts – like stocks or bonds – that are subject to the Commission’s regulation.
“Kentuckians of all ages and backgrounds are eager to access crypto to assert their financial freedom and guard against historic inflation. Instead of encouraging this vibrant new digital industry, the Biden-Harris Administration is unlawfully cracking down on cryptocurrency,” said Attorney General Coleman. “Along with conservative AGs across the country, we’re fighting to keep the federal government from reaching into Kentuckians’ wallets – both physical and digital.”
According to a 2022 report, Kentucky had the second highest collective computing power in the U.S. devoted to crypto mining, due to the Commonwealth’s competitive energy prices. Kentucky has also offered tax breaks to digital asset miners to attract their investment and jobs.
Kentucky’s General Assembly passed a law empowering the Commonwealth to take control of abandoned property, including virtual currency. The SEC’s unlawful regulation prevents Kentucky from enforcing its laws as a sovereign state.
The Attorney General’s Civil Chief Justin Clark and Assistant Attorney General Adrian Del Valle filed the complaint on behalf of the Commonwealth.
Joining General Coleman in filing the challenge were attorneys general from Arkansas, Florida, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah and West Virginia.
Read the complaint.