18 US States Sue Gary Gensler and SEC For Crypto Overreach

18 US States Sue Gary Gensler and SEC For Crypto Overreach

Eighteen US states, including Nebraska, Texas, and Wyoming, have filed a lawsuit against the SEC and its chairman Gary Gensler, accusing the regulator of overstepping its authority in its approach to crypto regulation. The complaint argues that the SEC has bypassed Congressional authorization, undermining states' rights with enforcement actions targeting the nascent crypto industry.

Since 2021, these actions have cost crypto firms $426 million in legal battles, stifling innovation and pushing developers out of the US. The lawsuit comes as President-elect Donald Trump has pledged to fire Gensler, hinting at a potential overhaul of the SEC’s leadership.

Candidates like Commissioner Mark Uyeda and former SEC Commissioner Dan Gallagher are rumored to be in the running to replace Gensler. Despite mounting criticism, Gensler defended his policies in a conference yesterday, emphasizing investor protection and asserting that most crypto assets lack sustainable use cases.

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Bitfinex Hacker Sentenced to Five Years in Prison

Ilya "Dutch" Lichtenstein has been sentenced to five years in prison for laundering 120,000 Bitcoin stolen in the 2016 Bitfinex hack, registering as one of the largest crypto-related cases in US history. The Bitcoin, valued at $72 million during the hack, is now worth over $10.7 billion, thereby rendering it the government’s largest crypto seizure to date.

Prosecutors reduced Lichtenstein’s sentence due to his cooperation in this and other crypto-related investigations, including the Bitcoin Fog case. Lichtenstein's wife and co-conspirator Heather Morgan, known as "Razzlekahn," awaits sentencing later this week, with prosecutors recommending an 18-month sentence for her smaller role.

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Pennsylvania Proposes Bitcoin Investment for State Reserves

Pennsylvania legislators Mike Cabell and Aaron Kaufer have introduced the Strategic Bitcoin Reserve Act, aiming to allow the state treasurer to invest in Bitcoin, crypto ETFs, and other digital assets. Cabell described Bitcoin as a hedge against inflation, aligning with similar investments by major institutions like BlackRock and Fidelity, as well as state-level moves in Wisconsin.

The proposal shows growing confidence in Bitcoin's ability to stabilize portfolios during economic uncertainty. The bill mirrors Senator Cynthia Lummis’s federal-level Bitcoin Act, which advocates for state and federal governments to integrate Bitcoin treasuries into their financial systems. Lummis believes the act could pass within the first 100 days of Trump’s administration.

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Tether Launches Hadron for Asset Tokenization

Tether has launched Hadron, a platform enabling users to tokenize assets like stocks, bonds, and even physical items such as art and luxury goods. The initiative would like to simplify asset tokenization, offering a wide range of options from stablecoins to more complex collateralized tokens. Tether's current core USDT stablecoin business, dominates the market with a $133 billion supply.

Tether CEO Paolo Ardoino emphasized that the platform will make asset tokenization secure, scalable, and accessible to a broad audience. Hadron joins a growing ecosystem of real-world asset projects, such as Ripple and Plume Network, which have focused on tokenizing industries from agriculture to private credit.

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Data of the Day

Solana hosted 89% of new token launches last week, with meme coins driving much of the activity, as 181,000 new tokens appeared on decentralized exchanges. Platforms like Pump.fun have made it easier to launch tokens, though only about 1% achieve listings on major DEXs like Raydium.

The surge in activity showcases Solana’s ability to handle high transaction volumes with minimal fees, reinforcing its appeal to developers. However, the high failure rate of new tokens highlights the speculative nature of the meme coins trend, even as institutional interest grows.

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More Breaking News

• Doodles art will appear on 100 million McCafe Holiday Cups in the US, and McDonald's app users can redeem codes for collectible McDonald's x Doodles NFTs.
• Bitcoin ETFs have crossed $500 billion in cumulative trading volume less than a year after launch, thanks to BlackRock’s recent $5 billion trading day.
• Deribit reached an all-time high of $40.8 billion in options open interest, driven by both institutional and retail demand for crypto options.
• Coinbase surged to the top 10 in the US Apple App Store amid a pro-crypto market rally fueled by Trump’s election, rising from 435th to 9th in days.
• Franklin Templeton expanded its tokenized government securities fund to Ethereum, adding to the $2.3 billion market for tokenized Treasuries.
• The Royal Government of Bhutan transferred another 365 BTC, worth $33.3 million, to Binance, potentially selling nearly $100 million of Bitcoin.
• Portal Ventures announced an oversubscribed $75 million fund to invest in early-stage crypto startups, with backers including a16z.

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