In a significant move, cryptocurrency exchange Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The exchange has targeted its Chairman, Gary Gensler, and the agency’s four commissioners.
This legal action comes in response to a Wells Notice, a preliminary warning indicating potential charges from the regulator. Crypto.com, operated by Foris DAX Inc., is determined to challenge what it perceives as an unlawful expansion of SEC jurisdiction over its operations.
Crypto.com Boast of Commitment to Compliance
Recently, Crypto.com received a Wells Notice from the SEC. The regulatory agency alleged that the crypto exchange fuels secondary-market sales of certain tokens on its platform.
In return, Crypto.com took a strong stance against the agency as it filed a lawsuit against it. The trading platform wants the court to prevent the SEC from overreaching its authority. In particular, the SEC should not enforce rules concerning the secondary market sales of tokens on its platform.
In a statement, Crypto.com emphasizes its commitment to maintaining safety, security, and compliance since its founding in 2016. The exchange boasts an impressive portfolio of over 100 regulatory approvals across various jurisdictions, including Ireland, South Korea, and the Netherlands.
Business as Usual Amid Legal Challenges
Despite the ongoing legal battle, Crypto.com assures its users that it remains business. The exchange continues to pursue its mission of making digital assets accessible to everyone as it eyes more partnerships in the sports landscape.
Crypto.com has filed a petition with the Commodity Futures Trading Commission (CFTC) and the SEC in a separate initiative. The exchange sought clarification that certain cryptocurrency derivative products fall solely under the CFTC’s jurisdiction.
In its recent lawsuit against the SEC, Crypto.com expresses optimism that the U.S. judicial system will act as a necessary check on what it perceives as the SEC’s arbitrary actions. The Exchange believes that its case could validate its claims and reaffirm its compliant operations, ultimately benefiting its customers and the broader crypto sector in the U.S.
Market Reactions
The market reacted negatively to CEO Kris Marszalek’s announcement regarding the lawsuit. Cronos (CRO), the native token of the Cronos blockchain developed alongside Crypto.com, experienced a decline of up to 4.7%.
At the time of writing, CRO is trading at $0.075, down 6.25% in the last 24 hours, according to CoinMarketCap data. This significant drop highlights the volatile nature of crypto markets, especially amid regulatory uncertainties.
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