Attorney General Bird Leads Coalition Warning Against Federal Overreach on Crypto Transactions

DES MOINES—Today, Attorney General Brenna Bird announced she is leading a 21-state coalition in a letter to the Securities and Exchange Commission (“SEC”) responding to their request for information as they consider how to regulate cryptocurrencies and other digital assets. 

The attorneys general are asking the SEC to carefully consider the effect of any action on states’ laws—including consumer protection laws. An overly broad definition threatens current states’ laws and their legitimate police power. Iowa and the other states weighed in to help ensure that the SEC works toward enacting a framework that protects Iowans.   

States like Iowa have been on the frontlines in protecting scam victims and prosecuting criminal scammers. They ask the SEC to avoid creating regulations that would allow scammers to bypass state consumer-protection laws.  

“Scammers need to be held accountable,” said Attorney General Bird, “and states like Iowa are doing that. The SEC is working hard to come up with a common-sense framework for how to responsibly regulate cryptocurrencies and we are helping them understand how regulation could have unintended consequences that hurt consumers. We look forward to the SEC incorporating our suggestions into its decision-making to make sure Iowans remain safe and secure when transacting in cryptocurrency.” 

Iowa is joined in the letter by Alabama, Alaska, Arkansas, Florida, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, and West Virginia.  

Read the full letter here.  

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For More Information:

Jen Green 

jen.green@ag.iowa.gov