Attorney General Hilgers Opposes SEC Attempt to Regulate Cryptocurrencies

Lincoln — Attorney General Hilgers joined a 7-state coalition today in opposing the illegal attempt by the U.S. Securities and Exchange Commission (SEC) 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 Nebraska have been on the frontlines in protecting scam victims and prosecuting criminal scammers. But now, the Biden Administration's 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.  

 

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. 

 

Nebraska joined the brief along with Arkansas, Indiana, Iowa, Kansas, Montana, and Oklahoma.