Crypto.com filed a lawsuit against the U.S. Securities and Exchange Commission on Tuesday, accusing federal agencies of going beyond their jurisdiction by regulating the cryptocurrency industry.
The cryptocurrency trading platform said its move was after receiving “Wells Notter” from top U.S. market regulators, citing Tokens’ trading qualifications on its platform as securities.
The Wells Notice is a formal statement that regulators intend to recommend enforcement actions. The SEC declined to comment.
Cryptocurrency companies have long accused the SEC of violating its jurisdiction, and the agency claims the industry is violating securities laws designed to protect investors and other market participants.
“Our lawsuit argues that the SEC has unilaterally expanded its jurisdiction beyond statutory restrictions and that the SEC has established an illegal rule that nearly all crypto assets are securities transactions,” Crypto.com said.
Retail trading platform Robinhood’s crypto business, major U.S. crypto exchanges Coinbase and NFT Marketplace Opensea are one of the companies in the digital asset industry that have received similar notifications from the SEC.
Crypto.com’s case filed in federal court in Taylor, Texas, where he also referred to SEC Chairman Gary Gensler and four other commissioners as defendants.
Additionally, the company has filed a petition with the Commodity Futures Trading Commission and the SEC and sought a joint explanation to confirm that certain cryptocurrency derivatives are specifically regulated by the CFTC.
The CFTC did not immediately respond to Reuters’ request for comment.
©Thomson Reuters 2024
(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
