Quick take:
- The lawsuit points to a Wells notice issued by the U.S. securities regulator amid the ongoing battle between the SEC and crypto companies.
- Crypto.com claims the Wells notice indicates a continuation of the SEC’s unauthorised and unjust regulation by enforcement on crypto.
- The company also points to the indication that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S.
Crypto.com is taking the fight back to the SEC after receiving a Wells notice from the U.S. Securities and Exchange Commission, which climbed that tokens traded on its platform qualified as securities.
Crypto.com is the latest in a growing list of crypto companies that previously received a Wells notice from the U.S. securities regulator with the likes of Robinhood Crypto, Coinbase and OpenSea also on the list.
However, the crypto exchange company is now suing the SEC in an attempt to “protect the future of the crypto industry in the U.S.”
According to Crypto.com, the Wells notice indicates a continuation of the SEC’s unauthorised and unjust regulation by enforcement despite the indication that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S.
“For now, improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the U.S,” Crypto.com wrote in a statement on Tuesday. “While this is an unprecedented move for our company to file suit against a federal agency, actions by that agency towards our industry have left us no other choice.”
Crypto.com alleges that the SEC has unilaterally expanded its jurisdiction beyond statutory limits, establishing “an unlawful rule that trades in nearly all crypto assets are securities transactions no matter how they are sold.”
The company claims that identical transactions in Bitcoin and Ethereum somehow are treated differently.
Crypto.com is seeking to stop the SEC’s “illegal actions in excess of their authority and in violation of federal law in their tracks.”
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