Key Takeaways
- Crypto.com has filed a lawsuit against the SEC over its crypto regulations.
- The company challenges the SEC’s rule that treats most crypto transactions as securities.
Crypto.com confirmed Tuesday it received a wells notice from the SEC. In response, the company initiated a lawsuit against the securities regulator, claiming that it overstepped its authority by claiming most crypto transactions are securities.
In typical wells notices, the SEC threatens legal action against recipients. In the case of Crypto.com, the warning indicates the SEC believes Crypto.com may have violated securities laws.
Crypto.com disagrees with the SEC’s move, saying that it is “unauthorized and unjust regulation.” The company believes the SEC’s rule unfairly targets Crypto.com while similar transactions with BTC and ETH are not treated the same.
Crypto.com also argues that the SEC’s rule was implemented without the mandatory notice and comment period as required by the Administrative Procedure Act, labeling the enforcement as arbitrary and capricious. The lawsuit is part of the company’s broader effort to halt what it views as illegal overreach by the SEC.
This is a developing story.
Source: https://cryptobriefing.com/crypto-com-sec-lawsuit/