One of the world’s leading crypto exchanges is hitting back in court against the US Securities and Exchange Commission (SEC).
After receiving a Wells notice from the SEC – an indication that the regulator is investigating an individual or entity – Singapore-based crypto exchange Crypto.com announced Today they filed suit against the agency.
“Today, Crypto.com filed a complaint against the U.S. Securities and Exchange Commission (SEC). We are doing this to protect the future of the US crypto industry and join a line of our colleagues who are actively defending themselves and taking action against a misguided federal agency that is acting beyond its legal authority.”
According to the announcement, the SEC’s regulatory style has forced Crypto.com to take unprecedented legal action against the SEC.
“Specifically, our lawsuit alleges 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, regardless of how they are sold, while identical transactions in bitcoin (BTC) and ether (ETH) are somehow not.
This illegal rule has never gone through a notice and comment period required by the Administrative Procedure Act, and furthermore, its application by the agency is arbitrary and capricious, especially when these crypto assets have virtually indistinguishable characteristics from and to the same way are sold as BTC and ETH.
We seek to stop the SEC’s illegal actions that exceed its authority and violate federal law.”
The complete file can be read here.
CEO of Crypto.com Kris Marszalek also turned to X to comment on the SEC’s continued hostility toward the industry.
“The SEC’s unauthorized overreach and unlawful regulation of crypto must stop.
Recent statements have made it clear that crypto in itself is not a security and therefore not an investment contract, simply because it changes hands.
For these and many other reasons, we remain very optimistic about the US crypto market and our upcoming plans to expand our offering to US customers.”
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Featured image: Shutterstock/NextMarsMedia