- Montana and seven other states challenge the SEC’s authority to regulate crypto as securities.
- They argue the SEC’s ecosystem theory oversteps its bounds and threatens existing state consumer protection laws.
- Legal experts see this as part of a growing global pushback against the SEC’s overreach.
Montana, a state in the U.S., has stepped into the legal fray surrounding the Securities and Exchange Commission’s (SEC) enforcement case against Kraken. Paul Grewal, Chief Legal Officer of Coinbase (NASDAQ:COIN), recently called attention to the development in a recent post on X.
Given that Montana’s action has received endorsements from seven other states, Grewal took to X to emphasize its significance.
In support of neither party, Montana just filed a rather remarkable amicus brief in the SEC’s enforcement case against Kraken. 7 other states support it. Here’s why those states all think the SEC’s “ecosystem” theory is unlawful and in fact a danger to their citizens: 1/5— paulgrewal.eth (@iampaulgrewal) March 1, 2024
The crux of the issue lies in the SEC’s purported “ecosystem” theory, which these U.S. states argue is not only unlawful but poses a s…
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