Singapore-based cryptocurrency giant Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission, according to a Tuesday announcement made by CEO Kris Marszalek.
Marszalek described the legal action as "unprecedented," arguing that it is a "warranted response" to the agency's controversial regulation-by-enforcement approach. The Crypto.com cofounder claims that this approach has hurt tens of millions of American cryptocurrency holders.
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Crypto.com, which boasts more than 80 million customers around the world, has accused the formidable regulator of inappropriately expanding the boundaries of its jurisdiction beyond the limits of the existing statutory authority.
"The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop," Marszalek stressed.
Prior to filing the lawsuit against the SEC, Crypto.com received a Wells Notice from the regulator. The agency typically issues such formal notifications to inform certain entities that they are under investigation due to an infraction. However, such a notice does not necessarily mean that the SEC is going to bring an enforcement action against the recipient.
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Earlier this year, Ethereum development studio Consensys also preemptively took the regular to court.
The SEC is also engaged in high-stakes legal fights with such major cryptocurrency trading platforms as Coinbase and Binance.
On top of that, the SEC recently filed an appeal in the Ripple case, prolonging the long-lasting legal battle.