Thomas Daniels
A U.S. federal court has ordered a temporary pause in the lawsuit filed by 18 Republican state attorneys general and the crypto lobby group DeFi Education Fund against the Securities and Exchange Commission (SEC), citing potential changes under new leadership.
On April 16, Kentucky District Court Judge Gregory Van Tatenhove granted a 60-day stay, referencing the SEC’s March statement that the ongoing case could be rendered moot following a leadership transition. The court further mandated that all parties submit a joint status report within 30 days.
Earlier this month, Paul Atkins, a former Wall Street adviser with prior affiliations to cryptocurrency advocacy groups, was sworn in as the SEC’s new chair. Atkins replaces Acting Chair Mark Uyeda and succeeds Gary Gensler, who faced significant criticism from the crypto industry for aggressive regulatory actions.
The lawsuit, originally filed in November, alleges that the SEC overstepped its authority by targeting cryptocurrency exchanges without Congressional approval. Plaintiffs include attorneys general from Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Indiana, Oklahoma, Florida, and others. They argue that the SEC engaged in “gross government overreach” by circumventing states’ rights through enforcement rather than through legislated regulatory frameworks.
In a related development, the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council voluntarily dismissed their lawsuit against the Internal Revenue Service (IRS) on April 16. The plaintiffs had challenged the IRS’s now-revoked DeFi broker rule, which required decentralized finance protocols to report transaction data. The action was dismissed as moot following President Donald Trump’s signing of a bill on April 11 to repeal the controversial rule.
The SEC has also paused or dropped several enforcement actions against cryptocurrency companies in 2025, signaling a potential shift in regulatory priorities under Atkins’ leadership.
