- Crypto.com sued the SEC for regulatory overreach in a court in Texas.
- SEC was accused of categorizing cryptocurrencies as securities without consulting the public.
- Crypto.com aims to prevent the SEC from growing its dominance over other cryptocurrencies besides BTC and ETH.
Cryptocurrency exchange Crypto.com is fighting a new battle. The U.S. Securities and Exchange Commission (SEC) sent the firm a Wells notice. The notice concludes that the SEC plans to act against the platform.
The lawsuit targets U.S. SEC Chair Gary Gensler and four commissioners. It detracts from the classification of some of the crypto assets provided by the regulation.
As per Crypto.com, the Wells notice shows that the SEC will continue unauthorized and unjust regulation through enforcement.
The lawsuit is supposed to prevent what Crypto.com alleges that the SEC is engaged in, violating the law. It wants an injunction to restrain the SEC from pursuing its line in this manner.
Crypto.com Takes on SEC’s Regulatory Policies
Crypto.com claims the SEC went beyond its powers to classify most tokens as securities. However, they only excluded Bitcoin and Ethereum.
The company has said the agency has no jurisdiction to take such an action. The firm also stated no legal grounds for the agency’s action.
After this action, Crypto.com is among the companies that have challenged the SEC regulations through enforcement strategies. Consensys and Coinbase, 2 prominent crypto exchanges, are among the other entities.
They have also decided to counter the ‘unlawful’ action from the SEC by filing other lawsuits. Their previous lawsuits are still ongoing.
The complaint was filed in Texas district court. It seeks an injunction on the actions of the US SEC, which the complaint referred to as ‘arbitrary or capricious.’
In the suit, Crypto.com is seeking legal redress for not only the violation of its rights. They are also fighting for the rights of the entire U.S. cryptocurrency market, which is also affected.
Exchange CEO Shares Latest Updates and Insights
Kris Marszalek is the co-founder and CEO of the Crypto.com. He shared the latest developments regarding their legal actions on the US SEC via a tweet on the X platform.
“This kind of action from our company to the federal agency unprecedented because the SEC has created the regulation through enforcement approach that negatively impacted more than 50M American crypto investors,” he said.
Via their official blog, the firm stated that,
“Our lawsuit contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and separately that the SEC has established an unlawful rule that trades in nearly all crypto assets are securities transactions no matter how they are sold, whereas identical transactions in bitcoin (BTC) and ether (ETH) are somehow not.”
He further added that Crypto.com wants to stop the SEC’s unlawful conduct over and beyond its authority. The firm also wants to put the rest on the violation of federal law in its track.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.