Crypto.com Sues US SEC

Crypto.com has taken legal action against the US Securities and Exchange Commission, claiming that the federal agency is overstepping its authority by regulating the cryptocurrency industry.

This decision comes after the company received a “Wells notice” from the SEC asserting that certain tokens traded on its platform should be classified as securities.

A Wells notice serves as a notice from the SEC staff that they plan to recommend enforcement action.

There has been ongoing tension between the SEC and cryptocurrency companies, with the companies accusing the SEC of overreach and the agency arguing that the industry is disregarding securities laws designed to protect investors and the market as a whole.

According to Crypto.com, their lawsuit argues that the SEC is exceeding its jurisdiction and that the agency has created an unlawful rule that deems virtually all crypto assets as securities transactions.