[NEWS] Crypto.com sues SEC to protect the future of crypto assets

Crypto.com, a cryptocurrency exchange, announced on the 8th that it has filed a lawsuit with the SEC (U.S. Securities and Exchange Commission). Crypto.com claims that this lawsuit is "to protect the future of crypto assets."

The SEC has issued a "Wells Notice" to Crypto.com, a notice to sue on the grounds that "tokens traded on the company's platform are classified as securities." This time, Crypto.com has filed a lawsuit as a means to counter that.

In a statement, Crypto.com said, "Our decision to sue the SEC comes at the expense of the SEC's continued unauthorized and unjust regulation, despite signs of bipartisanship that the incoming administration will take a constructive and effective approach to the development of crypto assets in the United States."

It also said, "The SEC's inappropriate enforcement actions are part of the process of operating a legal and licensed crypto asset business in the United States. It is an unprecedented move for us to file a lawsuit against a federal agency, but the actions the agency has taken against our industry have left us with no other choice."

Although this is a lawsuit against the SEC, it can also be seen as a criticism of Chairman Gary Gensler, who has been increasingly opposed to cryptocurrencies. Gensler is expected to be fired if former President Trump wins the presidential election.

Crypto.com also claims that "almost all cryptocurrency transactions are securities transactions regardless of the method of sale, but the SEC has established illegal rules that Bitcoin (BTC) and Ethereum (ETH) are somehow not securities transactions." In light of this situation, it criticized the SEC's application of regulations as arbitrary and purely capricious.

Furthermore, Crypto.com emphasized that "we aim to prevent illegal activities that exceed the SEC's authority and violate federal law," and declared that it will fight to the end in court.

Certain derivative products are regulated by the CFTC

Crypto.com has filed petitions with the CFTC and SEC, and through joint interpretation, has confirmed that certain crypto derivative products are regulated only by the CFTC.

Crypto.com is committed to using available regulatory tools to bring certainty to the industry, including a joint rulemaking petition under the Dodd-Frank Act.

Crypto.com is already registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business and holds money transmission business licenses in over 40 states.

It will continue to operate as a crypto exchange during the litigation.

Crypto.com, which was founded in 2016 and is based in Singapore, has been growing steadily. Its USD-denominated market share is currently growing rapidly, reaching 31%.

Reference: Announcement
Image: Shutterstock

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