Crypto.com sues SEC after receiving a Wells notice from the agency
Quick Take The crypto trading platform said it decided to sue the agency after receiving a Wells notice and said the SEC’s actions left them “with no other choice.” Crypto.com says its lawsuit asserts that the SEC has overexpanded its jurisdiction while also pushing back on the agency’s claim that most cryptocurrencies are securities.
Crypto.com says it is suing the U.S. Securities and Exchange Commission after receiving a notice that the agency plans to bring an enforcement action against the company.
The crypto trading platform said it decided to sue the agency after receiving what is known as a Wells notice and said the SEC's actions left them "with no other choice."
"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.," Crypto.com said in a statement on Tuesday.
Crypto.com says its lawsuit asserts that the SEC has overexpanded its jurisdiction while also pushing back on the agency's claim that most cryptocurrencies are securities.
The firm is not the first crypto company to sue the SEC. Consensys sued the SEC in April, partly over how the agency categorized ether as a security. Coinbase has filed multiple lawsuits against the SEC, including for not providing clear rulemaking for digital assets.
The SEC has consistently warned that crypto exchanges must register with the agency. Meanwhile, crypto firms have argued it's not possible to register with the agency, in part because rules were made for more traditional entities that are different from the digital asset industry.
The regulator has also taken legal action against big crypto firms, including Coinbase, Kraken and Binance.
The SEC did not immediately respond to a request for comment.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
From "whoever pays gets it" to "only the right people get it": The next generation of Launchpads needs a reshuffle
The next-generation Launchpad may help address the issue of community activation in the cryptocurrency sector, a problem that airdrops have consistently failed to solve.

After bitcoin returns to $90,000, is Christmas or a Christmas crash coming next?
This Thanksgiving, we are grateful for bitcoin returning to $90,000.

Bitcoin security reaches a historic high, but miner revenue drops to a historic low. Where will mining companies find new sources of income?
The current paradox of the Bitcoin network is particularly striking: while the protocol layer has never been more secure due to high hash power, the underlying mining industry is facing pressure from capital liquidation and consolidation.

What are the privacy messaging apps Session and SimpleX donated by Vitalik?
Why did Vitalik take action? From content encryption to metadata privacy.

