|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Crypto.com Sues SEC After Wells Notice Targets Secondary-Market Token Sales
Oct 09, 2024 at 03:03 am
(Bloomberg) -- Crypto.com filed a lawsuit against the US Securities and Exchange Commission after receiving a Wells Notice indicating the regulator’s intention to sue the digital-asset exchange for operating as an unregistered broker-dealer and securities clearing agency.
Crypto.com is suing the US Securities and Exchange Commission after receiving a Wells Notice from the regulator indicating its intention to sue the digital-asset exchange for operating as an unregistered broker-dealer and securities clearing agency.
The regulator 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,” Crypto.com said in a statement Tuesday.
The SEC does not comment on the existence or nonexistence of a possible investigation, an agency spokesperson said.
The notice is the latest in a string of enforcement actions brought by the SEC against the crypto industry in recent years. Companies including Kraken, Coinbase, Consensys and Uniswap have all been targets of such notices or lawsuits in the past, with some still engaged in legal proceedings.
“The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop,” Crypto.com Chief Executive Officer Kris Marszalek wrote on social media platform X.
Crypto.com, which is formally named Foris DAX Inc., declined to comment further on the lawsuit. Crypto.com was founded in 2016 in Hong Kong and rebranded to Crypto.com in 2018 after a purchase of the domain. Marszalek said in an interview with Bloomberg earlier this year that its platform has more than 80 million registered users.
The lawsuit seeks to prevent the SEC from “unlawfully expanding its jurisdiction to cover secondary-market sales of certain network tokens sold on Crypto.com’s platform.” CRO, the token of Cronos blockchain developed by Crypto.com, fell 7.6%, according to data from tracker CoinGecko.
In April, Consensys sued the SEC in federal court in Texas to fend off regulation of the Ethereum blockchain and push back against the SEC’s “campaign to seize control over the future of cryptocurrency,” as the firm disclosed it received a Wells Notice. A federal judge tossed the suit in September. The SEC sued the operator of the popular crypto wallet MetaMask in June.
Crypto.com's North American derivatives unit also filed a petition with the Commodities Futures Trading Commission and SEC seeking to confirm by joint interpretation that certain crypto derivative products are solely regulated by the CFTC.
“It’s not surprising to see many crypto businesses turning the tables and preemptively suing the SEC,” Michael Selig, partner at Willkie Farr & Gallagher LLP, wrote on X, commenting on Crypto.com's lawsuit.
--With assistance from Nicola M. White.
(Add details on Consensys’ lawsuit in the eighth paragraph.)
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Best Hot Wallets Compared: Plus Wallet, MetaMask, Electrum, Trust Wallet, and Binance Wallet
- Oct 09, 2024 at 08:20 am
- Crypto hot wallets are digital wallets connected to the internet, allowing quick access to cryptos. Hot wallets are particularly known for their rapid transactions and easy transfers, making them most suitable for active traders and everyday users.
-
- RCO Finance (RCOF): The Potential “Solana Killer” Targeting a 3,600% Run by Q1 2025
- Oct 09, 2024 at 08:15 am
- Investors are always looking for the next big altcoin for massive returns, and one top PEPE trader has found it. The PEPE trader has become a potential “Solana killer” and is making headlines for its massive growth potential.
-
- Bitcoin Price Recovers, Analysis Suggests Short-Term BTC Holders Have Been Exiting the Market
- Oct 09, 2024 at 08:15 am
- According to analysis conducted by CryptoQuant analyst IT Tech, the supply of Bitcoin being held by short-term holders has decline “especially after major sell-offs,” which reduces selling pressure and creates “opportunities for accumulation and may signal a price floor.”