On October 8, Crypto.com announced that the company had filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The exchange explained that the lawsuit is a response to a Wells notice issued by the SEC, which Crypto.com argues is part of the agencyâs overreach in regulating the crypto industry.Â
Kris Marszalek, Co-Founder and CEO of Crypto.com, voiced his concerns on social media platform X, stating, âThe SECâs unauthorized overreach and unlawful rulemaking regarding crypto must stop.â
The exchange contends that the SEC has improperly classified nearly all crypto asset transactions as securities while excluding Bitcoin (BTC) and Ether (ETH) from this classification. Crypto.com argues that the SECâs actions are inconsistent and that similar transactions involving BTC and ETH are treated differently without justification. The lawsuit further claims that the SEC imposed this rule without following the required notice and comment period under the Administrative Procedure Act, making its actions arbitrary and unlawful.
Additionally, Crypto.comâs affiliate, Crypto.com | Derivatives North America (CDNA), has filed a petition with the Commodity Futures Trading Commission (CFTC) and the SEC. The petition seeks clarification on the regulatory oversight of specific cryptocurrency derivatives, requesting a joint interpretation on whether these products should fall under the jurisdiction of the CFTC, the SEC, or both.
Crypto.com emphasized its commitment to compliance, highlighting that it holds over 40 state money transmitter licenses and is registered as a money services business with FinCEN. The exchange also noted that its affiliate is registered with the CFTC as a designated contract market and derivatives clearing organization.Â
This unprecedented action by our company against a federal agency is a warranted response to the SECâs regulation by enforcement regime which has hurt more than 50 million American crypto holders.
â Kris | Crypto.com (@kris) October 8, 2024
Featured Image via Crypto.com
