- Crypto.com announced that the company has taken legal action against the SEC.
- The exchange received a Wells notice stating that the company might be involved in the illegal sale of securities.
- CRO is down nearly 6% following the announcement.
Crypto.com revealed that it filed a lawsuit against the Securities & Exchange Commission (SEC) on Tuesday in response to a Wells notice that it received from the regulatory body. Additionally, the exchange filed a petition to the Commodities & Futures Trading Commission (CFTC) and the SEC to clarify if certain derivative products are solely regulated by the CFTC.
Crypto.com responds to SEC Wells notice
In a blog post on Tuesday, Crypto.com announced that it has taken legal action against the SEC after it received a Wells notice from the regulator.
The company noted that its action to sue a federal agency is unprecedented but reflects a passion to "protect the future of the crypto industry in the US." It also argues that the SEC's regulatory approach toward the crypto industry has extended beyond the scope of its jurisdiction.
"Specifically, our lawsuit contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits," Crypto.com stated.
The company included that the SEC operates a system that places the trading of nearly all crypto assets under securities trading — no matter how they are sold. However, it stated that the SEC doesn't apply the same framework to cryptocurrencies like Bitcoin and Ethereum, which are sold identically to other crypto assets.
Crypto.com's lawsuit follows a series of legal actions between the SEC and several crypto companies in recent months, including Coinbase, Binance, Ripple, Uniswap Labs, Robinhood and Consensys.
Additionally, the exchange filed a petition with the CFTC and SEC to confirm via joint interpretation that certain cryptocurrency derivative products are under the watch of the CFTC only. The company intends to use this approach to bring clarity to regulations guarding the crypto industry.
"Crypto.com is committed to using all regulatory tools available to help bring certainty to the industry, including this petition for joint rulemaking under the Dodd-Frank Act," wrote the company.
Following the announcement, CRO, Crypto.com's native token, has declined nearly 6%, extending its weekly loss to over 8%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.