Crypto.com Takes On the SEC

The exchange is responding to a Wells notice they received from the SEC. This indicates that the agency is trying to impose rules that they believe are unfair and not legally justified.

Crypto.com filed a lawsuit against the SEC on Friday. The exchange is aiming to protect the future of cryptocurrency in the United States with this legal action.

According to the crypto exchange, the SEC is trying to regulate secondary market sales of crypto without clear authority from Congress. They are also highlighting the agency’s practice of using enforcement actions to expand its oversight of the crypto industry.

Crypto.com received a Wells notice from the SEC, indicating the agency’s intent to pursue an enforcement action against the exchange. In response, Crypto.com filed a preemptive lawsuit in the U.S. District Court for the Southern District of Florida on Friday.

The lawsuit aims to clarify the legal authority for regulating secondary market sales of crypto and challenges the SEC’s approach to expanding its oversight through enforcement actions.

Crypto.com argues that the SEC is attempting to extend its authority beyond the boundaries permitted by law. They claim that the agency has created a confusing rule that classifies most trades involving cryptocurrencies as securities transactions.

However, similar transactions involving popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH) are not treated in the same manner. This inconsistency is being challenged by the crypto exchange.

Furthermore, Crypto.com points out that the SEC introduced this new rule without allowing the public to comment on the matter. This step is typically required by federal law when an agency introduces new rules.

According to the exchange, the SEC’s actions are not only arbitrary but also illegal.

In their lawsuit, Crypto.com aims to put a stop to what they perceive as the SEC’s illegal actions. They believe these actions斯克intera ctiy crypto industry and make it difficult for legitimate businesses to operate in the space.

To support their claims, they have made detailed information about their lawsuit available to the public, highlighting their concerns about the SEC’s approach to regulation.

This legal action by Crypto.com adds to the ongoing tension between the crypto industry and the SEC over the classification and regulation of digital assets in the United States.