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Cryptocurrency exchange Crypto.com on Tuesday notified the U.S. Securities and Exchange Commission (SEC), Chairman Gary Guenther, and four commissioners after being notified that the regulator intends to bring enforcement action against the company. announced that they have filed a lawsuit against them. . According to Crypto.com, this legal action is aimed at protecting the future of the American cryptocurrency industry.
Crypto.com has filed a lawsuit against the Securities and Exchange Commission for overstepping its authority by calling most crypto securities.
The exchange said in a post sharing news of the lawsuit that it had been issued a wells notice by the SEC. Wells notices are preliminary warnings that inform recipients of accusations being considered by Wall Street watchdogs.
“Our decision to sue the SEC follows receipt of the Wells Notice from Commission staff,” Crypto.com’s statement reads, adding, “Our decision to sue the SEC follows receipt of the Wells Notice from Commission staff,” adding, “We believe the incoming administration will take unjustified policies. This indicates that the SEC’s unauthorized and unjustified regulatory enforcement campaign continues despite bipartisan signs that “a more constructive and effective approach to the advancement of cryptocurrencies in the United States” is warranted.”
Crypto.com acknowledged that filing a lawsuit with the SEC was unprecedented for the company, but argued that the commission’s actions left it with “no other choice.”
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And to use all available regulatory tools to bring certainty to the industry through appropriate rulemaking, https://t.co/pFc4Pz9nFR urges the CFTC to review the classification of virtual currency derivative products. and filed a petition with the SEC.
— Kris | Crypto.com (@kris) October 8, 2024
Crypto.com also claims that the SEC “unilaterally expanded its jurisdiction beyond the statutory scope.”
In its lawsuit, Crypto.com accuses the SEC of “entirely inventing the term crypto asset security in order to expand its jurisdiction over the digital asset industry.”
“This term has no basis in securities or exchange laws, nor does it resemble a financial instrument as defined by those laws.”
The exchange further noted in its lawsuit that the SEC had threatened enforcement action against it “with respect to secondary market sales of network tokens on its platform.” The agency has established a portfolio of popular Targeting tokens. NEAR, DASH.
Crypto.com’s official statement states: “We are doing so to protect the future of the U.S. crypto industry, and we are actively defending ourselves against errant federal agencies acting beyond their authority under the law. We join a growing number of other companies in our industry that are taking action.” It is assumed.
It is worth remembering that the SEC has pursued countless prominent crypto-focused companies during the tenure of Chairman Gary Gensler, who took office in 2021. Other major industry targets include Coinbase, Binance, Ripple, and ConsenSys.
