Last updated on November 11th, 2024 at 10:54 am
Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in response to regulatory actions it deems overreaching and unjust. The cryptocurrency exchange received a Wells notice from the SEC, signaling potential enforcement action. Crypto.com argues that the SEC is overstepping its legal boundaries by attempting to regulate nearly all crypto assets as securities while inconsistently exempting Bitcoin and Ethereum.
Kris Marszalek, co-founder and CEO of Crypto.com, said that such a lawsuit would help preserve the future of the industry in the United States. He also noted that the SEC has taken actions that have pushed the exchange into becoming among other industry players to fight the agency’s move. Marszalek stressed that the actions of the SEC in recent months are opposite to the bipartisan works, which indicates that the next administration might considerably improve the stance on the regulation of cryptocurrencies.
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Crypto.com’s Regulatory Petition and Commitment to Compliance
In addition to the lawsuit, Crypto.com’s U.S. affiliate, Crypto.com Derivatives North America (CDNA), has filed a petition against both the SEC and the Commodity Futures Trading Commission (CFTC) to clarify which agency holds jurisdiction over certain cryptocurrency derivative products. Initiated under the Dodd-Frank Act, the petition demands a legal categorization of some products as ‘swap,’ ‘security-based swap,’ or ‘mixed swap.’ The agencies are granted 120 days to present a response, or the public can justify their actions.
However, Crypto.com insisted that it complies with the law by pointing out that it is a registered money services business in the U.S. with the FinCEN. Having more than 40 state money transmitter licenses, the company underlined its focus on safety, security, and compliance with the regulations in its operations.
Conclusion
Crypto.com’s legal battle with the SEC underscores growing tensions between cryptocurrency firms and regulators. While the exchange continues to operate and seek regulatory clarity, it remains confident that the U.S. judicial system will validate its claims and safeguard the future of the crypto industry.
Also Read: Crypto.com Transfers Massive 2 Trillion SHIB Tokens Between Wallets, What is Happening?
