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Crypto.com, one of the top crypto exchanges, is suing the U.S. Securities and Exchange Commission (SEC) to protect the future of cryptocurrency in the U.S. This lawsuit came after the SEC sent Crypto.com a notice warning that they could face legal action soon.
CEO Speaks Out
On October 8, Kris Marszalek, the CEO of Crypto.com, posted on X (formerly Twitter) about the lawsuit. He said the SEC’s way of regulating crypto has caused problems for millions of Americans. Marszalek explained that the lawsuit is their way of standing up to the SEC’s overreach.
Why the Fight?
Crypto.com claims that the SEC is trying to regulate crypto in a way that goes beyond its legal authority. Specifically, the company says the SEC is wrong to treat most crypto transactions as securities trades and is challenging this in court.
What’s a Wells Notice?
The lawsuit comes after the SEC gave Crypto.com a Wells notice, which usually means the company could face legal action soon. Despite this, Crypto.com says their operations are running normally.
Asking for Clearer Rules
Crypto.com also wants clearer rules on how crypto products are regulated. They’ve filed a petition with both the SEC and the Commodity Futures Trading Commission (CFTC), asking for a clear decision on which agency should regulate specific crypto products. The law says the agencies have 120 days to respond.
