On October 8, Crypto.com announced that the company had filed a lawsuit against the United States Securities and Exchange Commission (SEC). The exchange explained that the lawsuit is a response to a Wells Notice issued by the SEC, which Crypto.com says is part of the agency’s overreach in regulating the crypto industry.
Kris Marszalek, co-founder and CEO of Crypto.com, expressed his concerns on social media platform »
The exchange claims that the SEC wrongly classified almost all crypto asset transactions as securities while excluding Bitcoin (BTC) and Ether (ETH) from that classification. Crypto.com claims that the SEC’s actions are inconsistent and that similar transactions involving BTC and ETH are treated differently without justification. The lawsuit further claims that the SEC imposed this rule without complying with the notice and comment period required under the Administrative Procedure Act, thereby making its actions arbitrary and illegal.
Additionally, Crypto.com’s subsidiary, Crypto.com | Derivatives North America (CDNA) has filed a petition with the Commodity Futures Trading Commission (CFTC) and the SEC. The petition seeks clarification on regulatory oversight of certain cryptocurrency derivatives, requesting a common interpretation on whether these products should fall under the jurisdiction of the CFTC, the SEC, or both.
Crypto.com highlighted its commitment to compliance, noting that it holds more than 40 state money transmitter licenses and is registered as a money services business with FinCEN. The exchange also noted that its subsidiary is registered with the CFTC as a designated contract and derivatives market clearing organization.
Featured image via Crypto.com
