Crypto com filed suit against the United States SEC
The U.S. government is being sued by Crypto.com for allegedly overstepping its authority with regard to securities law and cryptocurrencies.
After the U.S. Securities and Exchange Commission (SEC) served the company with a Wells notice, indicating that the commission has concluded an investigation and is likely to charge the company with securities violations, the company announced its lawsuit Tuesday morning.
Today, https://t.co/pFc4Pz9nFR filed suit against the SEC to protect the future of crypto in the U.S.: https://t.co/kXxyhF7zFe
— Kris | Crypto.com (@kris) October 8, 2024
Crypto.com argues that the SEC is unlawfully acting beyond its jurisdiction, that it is substituting litigation for rulemaking, and that the company's tokens do not qualify as securities under federal law.
Legal battle against SEC to protect the future of crypto in the US
The company explaining in a statement why it has filed a suit against the agency said the company is joining a number of other peers who are defending themselves and taking action against a misguided agency that is acting beyond its legal authority in order to safeguard the future of the cryptocurrencies industry in the United States.
Despite bipartisan signals that the next administration will adopt a more positive and successful strategy to advance cryptocurrency in the United States, the SEC's unlawful and unfair regulation by enforcement campaign persists, as evidenced by our decision to sue the agency after receiving a Wells notice from the Commission staff.
According to Crypto.com lawsuit, the SEC has created an illegal rule that states that trades in almost all cryptocurrency assets are securities transactions regardless of how they are sold, but identical transactions in Bitcoin and Ether are somehow not.
Petition filed to confirm specific crypto products are regulated by CFTC
Crypto.com has also filed a petition with the SEC and CFTC to confirm through joint interpretation that certain cryptocurrency derivative products are only governed by the CFTC. Under the joint rules, any market participant can ask the CFTC and SEC if a product is a swap, security-based swap, or mixed swap.
According to the post, the agencies have 120 days under these joint rules to either reject an interpretation or issue a jointly approved interpretation, including by soliciting public comment. They must, however, publicly and in writing explain their reasons for refusing to issue the interpretation if they reject it.
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