Crypto.com has filed a lawsuit against the SEC, accusing the Commission of illegal actions in regulating cryptocurrencies.
On October 8, 2024, Crypto.com announced the filing of a lawsuit against the U.S. Securities and Exchange Commission (SEC), challenging the agency's overreach. The company claims that the SEC is acting beyond its jurisdiction by applying "regulation through enforcement" and demands a jury trial.
The lawsuit followed the receipt of a Wells Notice, indicating potential enforcement actions. Crypto.com also challenges the SEC’s position that most crypto-asset transactions are securities transactions, except for those involving Bitcoin (BTC) and Ether (ETH). The company argues that this is illegal because other digital assets have similar characteristics.
Crypto.com emphasizes its commitment to compliance with regulations and asks that some crypto derivatives be recognized as falling under the exclusive regulation of the CFTC.