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Crypto.com sues US SEC after receiving legal threat from regulator

Economic Times · 2m

- Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), claiming the agency is overstepping its jurisdiction in regulating the cryptocurrency industry. - The lawsuit comes after Crypto.com received a Wells notice from the SEC, indicating that the regulator's staff intend to recommend an enforcement action, as tokens traded on its platform are deemed securities. - Several crypto companies, including Robinhood, Coinbase, and OpenSea, have also received similar notices from the SEC, leading to accusations of overreach from the industry. - The lawsuit argues that the SEC has expanded its jurisdiction beyond statutory limits and imposed an unlawful rule that considers nearly all crypto assets as securities. - Additionally, Crypto.com has filed a petition with the Commodity Futures Trading Commission (CFTC) and the SEC, seeking clarification that certain cryptocurrency derivative products fall under the exclusive regulation of the CFTC.