Crypto.com Sues SEC Over Wells Notice, Alleging Regulatory Overreach in Texas

Oct 8, 2024, 01:59 PM

Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) after receiving a Wells Notice from the regulator. The Wells Notice indicates the SEC's intent to take enforcement action against the cryptocurrency exchange. In its lawsuit, Crypto.com argues that the SEC has overstepped its jurisdiction by classifying most crypto assets as securities without proper rule-making procedures. The company claims that the SEC's actions are beyond its statutory limits and that the regulator's approach threatens the future of the cryptocurrency industry in the United States. The lawsuit also targets SEC Chair Gary Gensler and the four commissioners. The legal action was filed in Texas, and the company highlighted that Bitcoin and Ethereum were not classified as securities. Crypto.com's ticker symbol is $CRO.