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Republican AGs Oppose SEC Efforts to Regulate Cryptocurrencies

  • A group of twelve Republican AGs wrote a comment to the SEC opposing a proposed rule that would expand the Commission’s authority by allowing it to regulate cryptocurrencies.
  • In the comment, the AGs argue that the SEC lacks authority to adopt the proposed “Safeguarding Advisory Clients Assets” rule which would expand the Commission’s regulatory reach beyond “funds and securities” held by an investment adviser to a wider array of assets like cryptocurrencies. The AGs argue that Congress did not intend for the SEC to regulate cryptocurrencies, that the proposed rule raises federalism concerns, and that the SEC has not allowed a meaningful opportunity to evaluate the proposed rule.
  • The AGs ask the SEC to decline to adopt the proposed rule.