Crypto.com has initiated a lawsuit against the Securities and Exchange Commission (SEC) following a Wells notice from the regulator indicating potential enforcement action.
In its statement, Crypto.com asserts that the lawsuit aims to “protect the future of the crypto industry in the US.” This makes Crypto.com the latest digital asset firm to face scrutiny from the SEC amid ongoing debates over whether assets on their platform qualify as securities. Notably, Robinhood Crypto disclosed in May that it too had received a Wells notice, while Coinbase has faced similar challenges.
The lawsuit argues that the SEC has overstepped its statutory authority and established an unlawful rule categorizing nearly all crypto asset transactions as securities transactions, in contrast to transactions involving Bitcoin (BTC) and Ethereum (ETH), which are exempted from such classification.
Additionally, Crypto.com’s Derivatives North America unit has petitioned the SEC and the Commodities Futures Trading Commission (CFTC) for a joint interpretation confirming that certain crypto derivative products are exclusively regulated by the CFTC.