Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) following the receipt of a Wells notice, indicating that the agency plans to take enforcement action against the company. The crypto trading platform stated that the SEC's actions left them with no alternative but to pursue legal action.
In a statement released on Tuesday, Crypto.com expressed, "Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff, illustrating that the SEC’s unauthorized and unjust regulation by enforcement campaign continues despite bipartisan indications that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S."
The lawsuit asserts that the SEC has overstepped its jurisdiction and challenges the agency's assertion that most cryptocurrencies are classified as securities. Crypto.com is not the first crypto company to take legal action against the SEC; Consensys filed a lawsuit in April regarding the agency's classification of ether as a security. Additionally, Coinbase has initiated multiple lawsuits against the SEC, including claims of unclear regulation regarding digital assets.
The SEC has consistently warned that crypto exchanges must register with the agency. However, crypto firms argue that registration is not feasible due to the rules being designed for traditional entities, which differ significantly from the digital asset industry.
This regulatory body has also taken legal measures against major crypto firms like Coinbase, Kraken, and Binance. As of now, the SEC has not responded to requests for comment.
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