Singapore-based crypto exchange Crypto.com has filed a lawsuit against the United States Securities and Exchange Commission (SEC).
The crypto exchange has joined forces with other companies to actively defend themselves and take a stand against a federal agency overstepping its legal authority, and protect the future of the crypto industry in the U.S.
“Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff, illustrating that the SEC’s unauthorized and unjust regulation by enforcement campaign continues despite bipartisan indications that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S,” the firm wrote.
Legal Action Against the SEC
The firm noted in its lawsuit that the SEC has overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.
The company also noted that its primary objective is to stop the SEC’s unlawful overreach and violation of federal law.
“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,” the company added.
The lawsuit claims that the SEC has failed to offer clear guidelines or a consistent regulatory framework, forcing crypto companies to navigate compliance through uncertainty. Crypto.com argues this has led to an unfair landscape, where certain firms are singled out while others face no scrutiny.
Crypto.com believes that security and compliance are essential to driving mainstream adoption of crypto, and all of its achievements are centered around safety, security, and regulatory adherence.
SEC Targets Major Platforms
Over the years, the SEC has ramped up enforcement, targeting various crypto platforms, including high-profile exchanges like Binance, Kraken, and Coinbase. The securities watchdog claims that many tokens traded on these platforms are unregistered, falling under its jurisdiction.
Exchanges have also told the agency that crypto assets are not securities. For instance, in September 2024, US-based crypto exchange Kraken replied to the SEC charges of offering crypto asset securities and investment contracts.
The exchange stated that the SEC violated federal securities laws and that its securities classification is unclear.
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