Crypto.com filed a lawsuit On Tuesday, it filed a complaint with the Securities and Exchange Commission, alleging that the regulator had “unilaterally expanded its jurisdiction beyond the statutory scope.”
The exchange lawsuit is List of cryptocurrency companies After receiving Wells' notice, the company is engaged in a legal battle with the SEC. The SEC typically sends this notice to companies before taking enforcement action.
The lawsuit also states that the SEC argues that “while nearly all crypto-asset transactions, no matter how they are sold, are securities transactions, the same transaction in Bitcoin and Ether is somehow not a securities transaction.” He also accused the government of establishing illegal rules.
Crypto.com argues that the rule is illegal because it did not go through the notice and comment period required by the Administrative Procedure Act.
Chris Marszalek, Co-Founder and CEO Posted on social media site X Tuesday By his metrics, he argued, the SEC's “enforcement regime regulation” is harming more than 50 million U.S. crypto holders. IThis is a term often used in the world of cryptocurrencies.with Coinbase CEO Brian Armstrong. raise your voice against it and the SEC's own Commissioner Hester Peirce.
Crypto.com, Announcement of statement Alongside the lawsuit, the company bills itself as a “worldwide industry leader in licenses, registrations and security certificates” and maintains more than 100 regulatory approvals around the world, helping to establish regulations specifically for the digital economy. He pointed out that he was doing it.
“Recent rulings have made clear that cryptocurrencies themselves are not securities and therefore are not investment contracts simply because they change hands,” Marszalek said, adding that some rulings mentioned. 2023 Judgment Against Ripple’s XRP Token, He said that cryptocurrencies are not securities when sold to the general public.
“For this reason and many others, we remain extremely bullish on the U.S. crypto market and our imminent plans to expand our offerings to U.S. customers,” he said.
An SEC spokesperson said the commission does not comment on “the presence or absence of an investigation.”
Depending on the number of enforcement action was passed In recent years, the SEC has been widely perceived as a non-compliant industry for cryptocurrency companies. Chairman Gary Gensler said last year that the industry is rife with problems. scammer, scammer, scammer.
This election season, he has been in the spotlight on both sides of the race, alongside Democratic presidential candidate Vice President Kamala Harris. pledge to support her Republican presidential candidate and former president Donald Trump gave the keynote speech at last month's event. Bitcoin 2024 Conference In July.
Marszalek said Crypto.com has also filed petitions with the Commodity Futures Trading Commission and the SEC to confirm the classification of virtual currency derivative products.
Joint rules under the Dodd-Frank Act allow market participants to freely ask the CFTC and SEC whether a product is a “swap,” “security-based swap,” or “blended swap.” . Each agency then has 120 days to issue a jointly approved interpretation or reject the interpretation. If they deny it, they must publicly explain the reasons. The Federal Reserve will also need to be consulted during this process.
Despite Wells' notice, while awaiting a response to the petition, Crypto.com “continues to pursue cryptocurrencies in all wallets,” the company said.
