(2024)
Kentucky et al. v. SEC (E. D. Ky.)
Year
2024
Criminal or Civil
Civil
Year Resolved
Unresolved
Jurisdiction (Court/State)
U.S. District Court for the Eastern District of Kentucky, confirmed by Case No. 3:24-cv-00069.
Filed By
The plaintiffs are 18 Republican-led states, listed explicitly in the docket, and the DeFi Education Fund, a crypto advocacy group.
Penalty/Fine (USD)
No penalties or fines are sought or imposed; the plaintiffs request declaratory judgments and injunctive relief.
Lawsuit Overview
The lawsuit, filed on November 14, 2024, challenges the SEC’s crypto policy under former Chairman Gary Gensler, which treats secondary digital asset transactions as securities and mandates platform registration. The plaintiffs argue this exceeds the SEC’s authority, disrupts state regulatory frameworks (e.g., money transmitter licenses), and violates the APA. They seek declarations that digital asset transactions lacking enterprise management or profit-sharing are not securities and that platforms facilitating such transactions need not register, plus an injunction against SEC enforcement. On April 16, 2025, Judge Gregory F. Van Tatenhove granted a 60-day stay (until June 15, 2025) to explore settlement, citing the SEC’s leadership transition to Chairman Paul Atkins, a crypto advocate, with a joint status report due by May 16, 2025. The docket (last retrieved January 2, 2025) shows active pro hac vice motions for plaintiffs’ counsel (e.g., Erin B. Gaide, Dylan L. Jacobs), indicating ongoing legal preparations. The case remains unresolved as of May 20, 2025.
Category
The case addresses SEC regulatory overreach, unregistered securities enforcement, and APA violations, focusing on the agency’s crypto policy.
Notable Individuals Involved
Updated to include all named defendants (Gary Gensler, Mark T. Uyeda, Hester M. Peirce, Caroline A. Crenshaw, Jaime E. Lizarraga, and the SEC), Judge Gregory F. Van Tatenhove, and attorneys Adrian Lazaro Del Valle (Kentucky), Harrison Gray Kilgore (Tennessee), and Ezekiel Levenson Hill (SEC). Paul Atkins is added due to his role as new SEC Chairman influencing settlement talks.
Investor Loss Estimate
The complaint does not quantify investor losses, focusing on economic harm to the digital asset industry and state regulatory authority.
Final Outcome
The case is ongoing, with a 60-day stay granted on April 16, 2025, to facilitate settlement talks, reflecting the SEC’s shift under Chairman Atkins. A joint status report was due by May 16, 2025, but no further updates are provided as of May 20, 2025.
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