Cryptocurrency exchange Crypto.com confirmed on Tuesday that it received a Wells notice from the staff of the U.S. Securities and Exchange Commission (SEC), where the exchange said it had filed a lawsuit against the regulator.
Crypto.com said it filed the lawsuit to "protect the future of the U.S. crypto industry and join a range of peers in vigorously defending themselves and taking action against a federal agency that exceeded its legal authority and acted inappropriately."
Crypto.com contends that the SEC unilaterally expanded its jurisdiction beyond the limits set by law and that the SEC additionally enacted an unlawful rule deeming virtually all transactions in cryptoassets to be securities transactions, regardless of how they are sold. The exchange claimed the rule never went through the notice and comment process required by the Administrative Procedure Act.
Additionally, Crypto.comâs derivatives company, Crypto.com | Derivatives North America, has submitted a petition to the U.S. Commodity Futures Trading Commission (CFTC) and SEC, requesting a common interpretation to confirm that certain cryptocurrency derivatives are regulated only by the CFTC.
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