Crypto.com has officially filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) following a Wells Notice issued in August, which warned of potential legal action against the exchange. CEO Kris Marszalek stated that this move aims to "protect the future of crypto in the U.S." and criticized the SEC for overstepping its jurisdiction by classifying most crypto transactions as securities trades. This lawsuit reflects a growing trend among crypto firms to challenge what they perceive as "regulation by enforcement" from the SEC, which they argue hampers innovation and consumer protection in the industry.
Key Points:
The lawsuit was prompted by a Wells Notice indicating possible enforcement actions against Crypto.com.
The SEC's classification of crypto transactions as securities is contested in the suit.
Crypto.com joins other firms in pushing back against SEC regulations.