As per a recent press release, Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) to protect the future of the cryptocurrency industry in the U.S. This move aligns with actions taken by other companies defending against what they view as an overreach by a federal agency acting beyond its legal authority.

The decision follows the receipt of a Wells notice from the SEC, highlighting ongoing regulatory enforcement efforts that Crypto.com sees as unjust. These actions continue despite bipartisan indications that the next Administration may adopt a more favorable approach to crypto regulation. While this lawsuit is unprecedented for the company, the SEC’s actions have left it with no choice.

Crypto.com’s lawsuit argues that the SEC has improperly expanded its jurisdiction and established an unlawful rule that classifies nearly all cryptocurrency transactions as securities, while similar transactions involving bitcoin (BTC) and ether (ETH) are not. This rule was implemented without the necessary notice and comment period and is considered arbitrary, as the assets share identical characteristics with BTC and ETH.

The company seeks to halt what it views as the SEC’s illegal actions that exceed its authority and violate federal law. Additional details about the lawsuit are available in the filing linked here.

Additionally, Crypto.com | Derivatives North America (CDNA) has petitioned the CFTC and SEC for a joint interpretation that certain cryptocurrency derivatives fall exclusively under CFTC regulation. The company aims to leverage all regulatory options for clarity in the industry.

Crypto.com is registered as a money services business with FinCEN and holds over 40 state money transmitter licenses, demonstrating its commitment to compliance. The company believes that security and compliance are essential for mainstream cryptocurrency adoption and proudly maintains over 100 regulatory approvals globally.

The company is confident that its strong compliance record and recent court rulings against the SEC position it favorably to contest these actions. Although the situation is unfortunate, it trusts that the U.S. Judicial Branch will provide checks on the SEC’s arbitrary decisions. Success in this matter will reinforce Crypto.com’s compliant operations for its customers and the broader U.S. crypto sector.

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