In a bold move, Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), challenging what it claims is an overreach of the regulator’s authority over the cryptocurrency industry. This lawsuit comes on the heels of a “Wells notice” the company received, indicating that the SEC staff plans to recommend enforcement action against it, arguing that some tokens traded on its platform qualify as securities.
A Wells notice serves as a formal warning from the SEC, and it has been a common occurrence for various crypto firms, including Robinhood, Coinbase, and OpenSea, all of which have faced similar scrutiny from the agency.
Crypto.com’s lawsuit, lodged in a federal court in Tyler, Texas, asserts that the SEC has expanded its jurisdiction beyond what is legally permissible and has created an unlawful rule classifying nearly all crypto asset trades as securities transactions. The suit specifically names SEC Chair Gary Gensler and four other commissioners as defendants.
“Crypto.com believes the SEC’s actions are a violation of statutory limits,” the company stated, emphasizing its position against the regulator’s authority. This case is part of a broader trend of crypto companies pushing back against what they see as excessive regulatory control over their operations.
In addition to the lawsuit, Crypto.com has also filed a petition with the SEC and the Commodity Futures Trading Commission (CFTC), seeking clarification on the regulatory status of certain cryptocurrency derivative products, hoping to confirm that these should fall under the CFTC’s jurisdiction instead.
As the battle between crypto firms and regulatory bodies intensifies, the outcome of this legal challenge could have significant implications for the future of cryptocurrency regulation in the U.S.

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