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Crypto.com’s lawsuit against the US SEC follows the exchange’s receipt of a Wells notice from the agency.
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Major cryptocurrency exchange and service provider Crypto.com is launching a legal battle against the United States securities regulator with the goal of protecting the future of the crypto industry in the country.
Kris Marszalek, co-founder and CEO of Crypto.com, took to X on Oct. 8 to officially announce that the company has filed a suit against the US Securities and Exchange Commission.
“This unprecedented action by our company against a federal agency is a warranted response to the SEC’s regulation by enforcement regime, which has hurt more than 50 million American crypto holders,” he wrote.
Source: Kris Marszalek
“We are doing so to protect the future of the crypto industry in the US, joining a series of our peers who are actively defending themselves and taking action against a misguided federal agency acting beyond its authorization under the law,” Crypto.com’s official announcement reads.
Marszalek also promised that the company would use “all regulatory tools available” to bring certainty to the industry through proper rulemaking. Crypto.com has also petitioned the Commodity Futures Trading Commission and the SEC to confirm categorizing crypto derivative products.
The move follows Crypto.com receiving a Wells notice from the SEC
In the announcement, Crypto.com indicated that its lawsuit against the SEC follows the company’s receipt of a Wells notice from the commission.
According to the exchange, the move by the SEC “illustrates that the SEC’s unauthorized and unjust regulation by enforcement campaign continues despite bipartisan indications that the next Administration will take a more constructive and effective approach.”
Crypto.com stated:
“For now, improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the US. While this is an unprecedented move for our company to file suit against a federal agency, actions by that agency towards our industry have left us no other choice.”
Crypto.com specified that its lawsuit contends that the SEC has “unilaterally expanded its jurisdiction beyond statutory limits.”
Front page of Crypto.com’s suit against the SEC. Source: Crypto.com
The exchange also argued that the SEC has “established an unlawful rule that trades in nearly all crypto assets are securities transactions no matter how they are sold.”
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News
