Oklahoma attorney general opposes federal regulation of cryptocurrencies

OKLAHOMA CITY (OBV) – Oklahoma Attorney General Gentner Drummond joined a multistate amicus brief opposing federal regulation of cryptocurrencies, saying it could prevent states from protecting citizens from crypto scams.

Iowa Attorney General Brenna Bird led an amicus brief filed in the U.S. District Court for the Northern District of Texas against the U.S. Securities and Exchange Commission (SEC). Drummond joined the amicus brief along with attorneys general from Arkansas, Indiana, Kansas, Montana and Nebraska.

The attorneys general say the SEC is violating the Administrative Procedure Act and Major Questions Doctrine by claiming regulatory power over cryptocurrencies. They argue that bureaucratic agencies cannot bypass Congress to give themselves regulatory powers that they say belong to the states.

“This brazen federal overreach by the Biden Administration will significantly hinder Oklahoma from protecting our citizens from scams,” Drummond said. “Moreover, the SEC’s policing of cryptocurrency is certain to stifle innovation and devastate the growing industry. We will defend and protect our citizens from nefarious scammers, and we do not need the Biden Administration to play Big Brother in this regard.”

Americans lost more than $4.6 billion to fake investment scams – more than any other reported scam category – in 2023, 21-percent higher than the total loss from such scams in 2022.

“States such as Oklahoma have been on the front lines in protecting scam victims and prosecuting criminal scammers. Now, however, the SEC’s attempting abuse of power would put the federal agency in charge of regulating cryptocurrency, bypassing state consumer-protection laws,” officials with Drummond’s office said. “Congress never gave the SEC power to regulate cryptocurrency, and there is no accountability to ensure the actions the SEC takes are legitimate and necessary.”

The amicus brief is shared below: