Crypto exchange Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), accusing the regulatory body of exceeding its legal jurisdiction in its efforts to oversee the cryptocurrency industry.
The lawsuit follows a Wells Notice issued by the SEC, signalling the agency’s intent to recommend enforcement action against the Singapore-based company. Crypto.com, along with other crypto entities like Coinbase and Robinhood, has faced increasing scrutiny as the SEC steps up its regulatory actions in the digital assets sector.
In its legal filing Crypto.com argues that the SEC has unlawfully expanded its authority, claiming the regulator has wrongfully classified nearly all crypto asset trades as securities transactions.
The company contends that the SEC’s actions are not only beyond its statutory limits but also harmful to the future of the crypto industry.
Alongside the lawsuit, Crypto.com has petitioned both the SEC and the Commodity Futures Trading Commission (CFTC) for a joint interpretation of regulatory boundaries, particularly concerning cryptocurrency derivatives. The lawsuit is the latest in a series of courtroom confrontations between crypto firms and U.S. regulators, amid a broader crackdown that intensified after the collapse of FTX in 2022.
