Red States’ Suit Over SEC Crypto Authority Halted Pending Deal

The Securities and Exchange Commission got a judge’s approval Wednesday to stay proceedings in a challenge to its authority over digital assets, after the agency signaled a potential resolution with 18 red states and an industry group that brought the Biden-era suit.

Kentucky, 17 other states, and the DeFi Education Fund filed the agency challenge in November 2024, arguing that the SEC wrongly asserted regulatory control over crypto and other digital assets by classifying them as investment contracts, but the states didn’t object to pausing their case after the change in administration, according to the order.

The SEC under Acting ...