Crypto.com Sues SEC and Chair Gensler Over Regulatory Overreach After Receiving Wells Notice

Oct 8, 2024, 01:50 PM

Crypto.com, a leading cryptocurrency exchange, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and its Chair Gary Gensler after receiving a Wells Notice from the regulator, signaling impending enforcement action. The lawsuit, filed in Texas, contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and is overstepping its authority by classifying most crypto assets as securities without proper rule-making procedures, except for Bitcoin (BTC) and Ethereum (ETH). Crypto.com argues that the SEC's overreaching actions are similar to those against other crypto exchanges like Coinbase and Binance and leave it with "no other choice" but to challenge the regulator in court. CEO Kris Marszalek stated that the company is "protecting the future of crypto in the U.S." and will "continue to be very bullish" on the industry's prospects.