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Kentucky Attorney General Russell Coleman leads 18-state suit accusing SEC of overreach on crypto
Summary
Russell Coleman told an interview that he and 17 other state attorneys general sued the SEC, alleging the agency lacks congressional authority to regulate crypto and is using "regulation by enforcement," a practice the plaintiffs say injects uncertainty and harms investment.
Kentucky Attorney General Russell Coleman said he is leading a multistate lawsuit accusing the Securities and Exchange Commission of unlawfully extending its authority over digital-asset markets.
Coleman told the host that "Congress has not authorized this agency to regulate crypto" and that the SEC has relied on enforcement actions rather than formal rulemaking, a practice he described as "regulation by enforcement." He said that approach creates uncertainty that deters investment in a new industry and that states are stepping in to protect their sovereign interests.
An SEC spokesperson, read on air by the host, declined to comment on ongoing litigation but said state securities regulators "have been strong partners in efforts to uncover and prosecute misconduct in the crypto markets." Coleman cited that concession as evidence states are actively policing the market but said it did not justify what he called federal overreach.
Coleman said 18 attorneys general joined the action and named Nebraska Attorney General Mike Hilgers as one colleague who signed on. He framed the suit as part of a broader challenge to what he described as an administration tendency toward regulatory "overreach," saying courts and Congress, not agencies, should set the rules for new markets.
Coleman urged clearer congressional guidance or formal rulemaking from the SEC, saying the industry itself has asked for definitive rules that the agency has not provided. He did not provide a timeline for the litigation or a scheduled court date on the broadcast.
The interview did not include a detailed list of counts in the complaint. Coleman encouraged viewers to read the complaint for the specific legal claims and evidence the states will present. The host said the program will continue to follow developments in the case.
