Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Crypto.com Receives Wells Notice – Responds With New Lawsuit Against ‘Misguided’ SEC

Crypto.com Receives Wells Notice – Responds With New Lawsuit Against ‘Misguided’ SEC

Daily HodlDaily Hodl2024/10/07 16:00
By:by Daniell Marlow

One of the leading crypto exchanges in the world is striking back against the U.S. Securities and Exchange Commission (SEC) in court.

After receiving a Wells notice from the SEC – an indication that the regulator is investigating a person or entity – Singapore-based crypto exchange Crypto.com announced today that they filed a suit against the agency.

“Today, Crypto.com has filed suit against the U.S. Securities and Exchange Commission (SEC). We are doing so to protect the future of the crypto industry in the U.S., joining a series of our peers who are actively defending themselves and taking action against a misguided federal agency acting beyond its authorization under the law.”

According to the announcement, the SEC’s regulation style has forced Crypto.com to take unprecedented legal action against the SEC.

“Specifically, our lawsuit contends 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 no matter how they are sold, whereas identical transactions in bitcoin (BTC) and ether (ETH) are somehow not.

This unlawful rule never went through a notice and comment period required by the Administrative Procedure Act and furthermore the agency’s application thereof is arbitrary and capricious, particularly when those crypto assets possess virtually indistinguishable characteristics from and are sold in an identical manner as BTC and ETH.

We seek to stop the SEC’s illegal actions in excess of their authority and in violation of federal law in their tracks.”

The full filing can be read here .

Crypto.com CEO Kris Marszalek also took to X to comment on the SEC’s ongoing hostility toward the industry.

“The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop.

Recent rulings have made clear that crypto is not itself a security and thus is not an investment contract simply because it changes hands.

For this reason, and many others, we continue to be very bullish on the U.S. crypto market and our imminent plans to expand our offerings to U.S. customers.”

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X , Facebook and Telegram

Surf The Daily Hodl Mix

Featured Image: Shutterstock/NextMarsMedia

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

ChatGPT’s head of product to testify in the DOJ’s antitrust case against Google

Share link:In this post: ChatGPT’s head of product, Nick Turley, has been added as a witness for the United States Department of Justice (DOJ) in its antitrust case against Google. Nick Turley is the latest addition to the witness list that features representatives from Perplexity and Microsoft. Google ramps up preparation for Turley’s testimony by asking for documents related to the hearing from OpenAI through a subpoena.

Cryptopolitan2025/01/18 16:01

SEC charges New York blockchain engineer over GME rug pull fraud

Share link:In this post: Eric Zhu settled SEC fraud claims for orchestrating a rug pull scheme involving Game Coin. Zhu allegedly misappropriated $553K by moving unlocked liquidity provider tokens to his control. The case marks one of SEC Chair Gary Gensler’s final enforcement actions.

Cryptopolitan2025/01/18 16:01

Analyst Points to the Next Target on the Horizon After the Surge in Bitcoin: “If This Place Is Breached, The Next Stop Could Be 128 Thousand Dollars”

A crypto analyst has spoken about the next target for Bitcoin’s price after its recent rally. Here are the details.

Bitcoinsistemi2025/01/18 14:00