A well-known Cryptocurrency trading platform Crypto.com has reportedly sued a case against the US Securities and Exchange Commission (SEC).
The Singapore-based crypto company alleged that the federal agency, the SEC is overstepping its jurisdiction by regulating the cryptocurrency initiative, according to the report from Reuters. Meanwhile, Crypto.com recently acquired a ‘Wells Notice’ from the SEC, saying that tokens traded on its platform qualified as securities.
Crypto.com CEO Kris Marszalek wrote to X (formerly Twitter) that this unusual action taken by our company against a federal agency is a reasonable response to regulation by the SEC’s enforcement mechanism. At the same time, he mentioned that this has caused losses to more than 50 million American crypto holders.
This unprecedented action by our company against a federal agency is a warranted response to the SEC’s regulation by enforcement regime which has hurt more than 50 million American crypto holders.
He further added that the SEC’s unauthorized access and illegal rulemaking regarding crypto must be stopped as it harms millions of crypto holders.
The company further claimed that this unlawful rule never went through the notice and comment period required by the Administrative Procedure Act. Furthermore, the agency’s application is arbitrary and capricious, especially when those crypto assets have nearly indistinguishable features and are sold similarly to BTC and ETH.
The Company also believes that our internationally recognized commitment to regulatory compliance and recent court rulings against the SEC’s claims against crypto industry participants put us in a winning position to challenge their unjust actions.
Unfortunately, Crypto.com believes that the US Judicial branch will help provide much-needed checks on the arbitrary actions of the current SEC leadership against crypto and validate our claims.
