Crypto trading platform files lawsuit against US market watchdog
Crypto.com stated that the lawsuit against the Securities and Exchange Commission is focused on safeguarding the future of the crypto industry. Read Full Article at RT.com
TroibNews 
The cryptocurrency exchange Crypto.com has launched a lawsuit against the US Securities and Exchange Commission (SEC), alleging that the regulator is overstepping its legal boundaries in its efforts to regulate the crypto industry.
The decision to file the lawsuit followed the receipt of a Wells Notice from the SEC, as stated in a message on the company’s website on Tuesday. Crypto.com asserts that it aims to safeguard the future of the cryptocurrency sector.
A Wells Notice serves as a formal indication that the regulator plans to recommend enforcement action. Retail trading platform Robinhood's crypto division, major US crypto exchange Coinbase, and NFT marketplace OpenSea are among others in the digital assets realm that have also received such notices, according to Reuters.
Crypto.com, which is based in Singapore, expressed that the SEC’s "unauthorized and unjust" actions against the crypto industry left them with no option but to proceed with the lawsuit.
“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…”
The statement continued, “We seek to stop the SEC’s illegal actions in excess of their authority and in violation of federal law in their tracks.”
In addition to the lawsuit, the company has also submitted a petition to both the Commodity Futures Trading Commission (CFTC) and the SEC, requesting a joint interpretation to confirm that certain cryptocurrency derivative products fall solely under CFTC regulation.
The cryptocurrency sector has endured increased regulatory scrutiny in the US since the 2022 collapse of FTX, a Bahamas-based exchange that was revealed as a Ponzi scheme diverting investor funds to executives and political donations.
Crypto firms have consistently accused the SEC of overreach, asserting violations of its jurisdiction, while the agency maintains that it has the authority to regulate cryptocurrencies under existing legislation.
According to the US law firm Troutman Pepper, the SEC's actions related to cryptocurrencies surged by more than 50% in 2023 compared to the previous year, and this trend is anticipated to persist.
Emily Johnson for TROIB News
The decision to file the lawsuit followed the receipt of a Wells Notice from the SEC, as stated in a message on the company’s website on Tuesday. Crypto.com asserts that it aims to safeguard the future of the cryptocurrency sector.
A Wells Notice serves as a formal indication that the regulator plans to recommend enforcement action. Retail trading platform Robinhood's crypto division, major US crypto exchange Coinbase, and NFT marketplace OpenSea are among others in the digital assets realm that have also received such notices, according to Reuters.
Crypto.com, which is based in Singapore, expressed that the SEC’s "unauthorized and unjust" actions against the crypto industry left them with no option but to proceed with the lawsuit.
“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…”
The statement continued, “We seek to stop the SEC’s illegal actions in excess of their authority and in violation of federal law in their tracks.”
In addition to the lawsuit, the company has also submitted a petition to both the Commodity Futures Trading Commission (CFTC) and the SEC, requesting a joint interpretation to confirm that certain cryptocurrency derivative products fall solely under CFTC regulation.
The cryptocurrency sector has endured increased regulatory scrutiny in the US since the 2022 collapse of FTX, a Bahamas-based exchange that was revealed as a Ponzi scheme diverting investor funds to executives and political donations.
Crypto firms have consistently accused the SEC of overreach, asserting violations of its jurisdiction, while the agency maintains that it has the authority to regulate cryptocurrencies under existing legislation.
According to the US law firm Troutman Pepper, the SEC's actions related to cryptocurrencies surged by more than 50% in 2023 compared to the previous year, and this trend is anticipated to persist.
Emily Johnson for TROIB News
