A federal judge in Kentucky has granted a 60-day pause in the high-profile lawsuit filed by 18 state attorneys general and the DeFi Education Fund against the U.S. Securities and Exchange Commission . The suit, launched in November 2023, challenges the SEC’s authority over crypto exchanges, accusing it of overstepping its jurisdiction without congressional approval.
SEC Faces 60-Day Legal Pause Over Alleged Crypto Overreach
Judge Gregory Van Tatenhove issued the stay on April 16, 2025, following a joint agreement between the plaintiffs and the SEC, citing that new leadership at the agency might render the case moot. The court has requested a joint status report from both sides within 30 days.
The change in leadership refers to Paul Atkins, who recently replaced Mark Uyeda as Chair after Gary Gensler’s departure. Gensler had aggressively expanded the agency’s oversight of crypto markets—a strategy critics say violated federalism principles.
The plaintiffs—led by Republican attorneys general from Kentucky, Florida, Texas, and Ohio—argue that the SEC’s enforcement actions invaded state-regulated territory and lacked legislative backing.
In a related development, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council dropped a separate IRS lawsuit on the same day. This came after President Trump signed a bill on April 11 repealing the controversial DeFi broker rule, eliminating the need for DeFi protocols to report transactions to the IRS.
Under Atkins, the SEC appears to be shifting course, leading to lawsuits being paused or dropped entirely.
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