- Twenty Republican AGs, led by Iowa AG Brenna Bird, sent a letter to the SEC in response to the Commission’s request for information as it considers how to regulate cryptocurrencies and other digital assets.
- In their letter, the AGs ask the SEC to carefully consider how any regulatory framework will interact with state laws and the states’ exercise of their traditional police powers. They encourage the SEC to avoid federal overreach that could inadvertently enable bad actors to circumvent state consumer protection provisions.
- In particular, the AGs urge the SEC to provide clear, narrowly tailored definitions of when a digital asset or related transaction qualifies as a “security” for the purposes of federal law. They argue that such precision will help prevent the preemption of state authority and guide states in applying their own laws—such as unclaimed property statutes—to digital assets. They also contend that broader federal definitions are unnecessary and counterproductive because state Unfair and Deceptive Acts and Practices statutes are better suited to prevent fraud and protect consumers.
- We have previously reported on some Republican AGs’ efforts to push back against what they believe is SEC overreach in the digital asset space, including a lawsuit filed by 18 Republican AGs and an amicus brief filed by 7 Republican AGs.