Crypto.com is ready to go all lengths for the future of crypto.
The crypto giant launched a legal battle against the U.S. Securities and Exchange Commission (SEC) to safeguard the future of the cryptocurrency sector in the United States.
On October 8, CEO Kris Marszalek announced on social media that the company had officially filed a lawsuit against the SEC.
The move underscores Crypto.com’s commitment to defending over 50 million American crypto investors affected by what it calls the SEC’s “regulation by enforcement” tactics.
Crypto.com isn’t alone—many other crypto companies are also challenging the SEC’s aggressive approach. The platform’s statement highlights the need for clear, consistent regulations:
For now, improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the US. While this is an unprecedented move for our company to file suit against a federal agency, actions by that agency towards our industry have left us no other choice.”
Marszalek promised that Crypto.com would leverage every regulatory tool available to create clarity and establish proper rulemaking for the industry. The company also filed petitions with both the SEC and the Commodity Futures Trading Commission (CFTC) to classify certain crypto derivative products appropriately.
The lawsuit comes on the heels of a Wells notice issued to Crypto.com by the SEC. This notification, according to the exchange, is another example of the agency’s unchecked attempts to regulate the crypto market without legal authority.
Crypto.com criticized the SEC for expanding its jurisdiction unilaterally and attempting to label nearly all cryptocurrency transactions as securities deals, regardless of how they are conducted.
Despite these regulatory headwinds, Crypto.com remains undeterred, continuing its mission to make crypto accessible for all. The company reassured its users that operations will proceed as normal while it fights for regulatory certainty in court.
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In its legal action, Crypto.com is not just pushing back against the SEC but also petitioning for a collaborative interpretation of certain crypto products with the CFTC.
Under the Dodd-Frank Act, market players have the right to seek clarity from these agencies on whether a product is classified as a “swap,” a “security-based swap,” or a “mixed swap.” The SEC and CFTC now have 120 days to respond with a jointly agreed interpretation or provide reasons if they deny the request.
Crypto.com emphasized that the agencies must work with the Federal Reserve Board of Governors to ensure a coordinated and transparent regulatory environment. This legal push could become a landmark moment, setting the stage for a clearer path forward for the U.S. crypto market.
