Eight states have accused the SEC of overstepping its authority with a lawsuit against Kraken

The attorneys general of eight states filed a joint statement to the court, in which they accused the U.S. Securities and Exchange Commission (SEC) of abuse of authority for a lawsuit against the Kraken platform.

The appeal was joined by the attorneys General of Iowa, Arkansas, Mississippi, Montana, Nebraska, Ohio, South Dakota and Texas, as well as some other politicians and industry experts.

In a statement, the officials stressed that they do not support either side. However, they expressed concern about the actions of the SEC, which were not delegated to the regulator by the US Congress.

"The Commission's actions put Americans at risk by repealing consumer protection laws at the state level. They are better adapted to the specific risks associated with financial products that do not fall under the definition of securities," the appeal says.

Officials insist that the court should refuse the regulator to classify crypto assets as securities in the absence of an investment contract. They also oppose the SEC's efforts to expand the concept of it.

The situation was commented on by the legal adviser of the Coinbase exchange, Paul Greval. He supported the actions of the officials.

Source: https://incrypted.com/vosem-shtatov-obvynyly-sec-v-prevyshenyy-polnomochyj-s-yskom-protyv-kraken/