Cryptocurrency exchange Crypto.com has announced a lawsuit against the U.S. Securities and Exchange Commission (SEC), alleging that the agency has overstepped its authority in regulating the crypto industry. The lawsuit was filed after Crypto.com received a Wells Notice, indicating the possibility of legal action against the company by the SEC.
💬 Crypto.com argues that the SEC has unlawfully expanded its jurisdiction by declaring nearly all crypto assets to be securities, except for Bitcoin and Ethereum. The company insists that this contradicts the approach to regulating digital assets and violates the Administrative Procedure Act, as the required public comment process was not conducted.
📝 The lawsuit also emphasizes that the SEC’s actions constitute “regulation by enforcement,” which creates significant risks for the future of the crypto industry in the U.S. As part of its dual strategy, Crypto.com has also filed a joint petition with the SEC and the Commodity Futures Trading Commission (CFTC) to establish clearer rules for cryptocurrency derivatives.
💬 Crypto.com CEO Kris Marszalek stated that the company aims to protect the future of cryptocurrencies in the U.S. and prevent the improper expansion of SEC authority. Crypto.com has joined a number of other industry participants who are also challenging the regulator’s actions in court.
🔗 Read more about this important event here: Crypto.com Sues SEC
