Eighteen states in the United States filed a lawsuit against the Securities and Exchange Commission (SEC) and Chair Gary Gensler, alleging that the agency is guilty of “gross government overreach” against the crypto space.

The plaintiffs alleged that the SEC did not respect the allocation of authority. The complaint claimed the SEC sought to wrest regulatory authority from the states through its enforcement actions against crypto entities. 

The plaintiffs include Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Nebraska, Tennessee, Wyoming and others.

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NY Supreme Court allows Greenidge to keep mining, but challenges remain

A New York State Supreme Court ruling permitted Greenidge Generation to continue Bitcoin mining and power generation at its New York facility. The ruling also allows the company to reapply and renew its Clean Air Act Title V Air Permit, which was denied in June 2022 by the Department of Environmental Conservation (DEC).

The court affirmed the DEC’s authority to deny the company’s permit under the state’s climate laws. It also found that the DEC had acted capriciously but said Greenidge had not established that the DEC “engaged in improper policymaking.”

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SEC crypto cases will be “dismissed or settled” under Trump: Consensys CEO

Consensys CEO Joe Lubin said the battle between the SEC and crypto companies will likely fade away under the incoming administration of President-elect Donald Trump. Lubin said the people involved will “figure out ways to get the cases dismissed or settled.”

Lubin said that while all cases might not be dismissed, the industry will save hundreds of millions of dollars as the space moves forward. Lubin also highlighted that the Trump team is already “moving aggressively.” The Consensys executive described Trump as a “pretty good politician” who “picks up on the zeitgeist and runs with it.”

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NY prosecutor suggests office will scale back crypto cases

Scott Hartman, a New York US prosecutor, indicated that officials are putting fewer resources into bringing crypto-related cases. On Nov. 15, Hartman spoke at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation event. 

During his speech, Hartman said there would not be so many crypto cases coming out of the Southern District of New York in the future. He said there are a lot of important fraud cases but that their regulatory partners are more active in the space. 

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