Drummond opposes Biden bureaucrats' attempt to override states in preventing cryptocurrency scams

OKLAHOMA CITY (July 18, 2024)– Attorney General Drummond is pushing back against an illegal power grab by the U.S. Securities and Exchange Commission (SEC) to regulate cryptocurrencies. The SEC’s attempt could result in keeping states from protecting their citizens from scams.

In 2023, Americans lost more than $4.6 billion to fake investment scams — more than any other reported scam category. That amount is a 21-percent increase from 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. 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.

“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.”

The states make the case that the SEC is violating the Administrative Procedure Act and Major Questions Doctrine. Unelected bureaucrats cannot bypass Congress to give themselves regulatory powers that belong to the states.

Oklahoma joined the Iowa-led amicus brief along with Arkansas, Indiana, Kansas, Montana and Nebraska.

Read the full amicus brief.