On October 8, Crypto.com announced that it had filed a lawsuit with the U.S. Securities and Exchange Commission (SEC). The exchange described the lawsuit as a response to the Wells Notice issued by the SEC, which Crypto.com claims is part of the SEC's overreach in regulating the crypto industry. There is.
Chris Marszalek, co-founder and CEO of Crypto.com, expressed concern about social media platform It should stop.”
The exchange claims that the SEC improperly classified nearly all crypto asset transactions as securities, while excluding Bitcoin (BTC) and Ether (ETH) from this classification. Crypto.com claims that the SEC's actions are inconsistent and that similar transactions involving BTC and ETH are being treated differently for no good reason. The complaint further alleges that the SEC imposed this rule without observing the notice and comment period required under the Administrative Procedure Act, and that its actions are arbitrary and illegal.
Additionally, Crypto.com's affiliate, Crypto.com | Derivatives North America (CDNA), has filed petitions with the Commodity Futures Trading Commission (CFTC) and the SEC. The petition seeks clarification regarding the regulatory oversight of certain virtual currency derivatives and seeks joint interpretation of whether these products should be subject to the jurisdiction of the CFTC, SEC, or both.
Crypto.com highlighted its commitment to compliance, noting that it holds money transfer licenses in over 40 states and is registered as a money services business with FinCEN. The exchange also noted that its affiliates are registered with the CFTC as a designated contract market and derivatives clearing organization.
Featured image via Crypto.com
