Crypto.com, a popular cryptocurrency exchange, is taking on the SEC. The SEC has been cracking down on crypto companies, and Crypto.com is the latest to feel the heat.
SEC Accused of Overreach
Crypto.com received a Wells Notice from the SEC, which is basically a warning that the SEC is considering taking action against them. In response, Crypto.com filed a lawsuit against the SEC, claiming they are overstepping their authority.
Crypto.com argues that the SEC is trying to classify almost all crypto transactions as securities, except for Bitcoin and Ethereum. They say this is unfair and doesn’t make sense legally. They also say the SEC is acting without following proper procedures.
Pushing for CFTC Oversight
Crypto.com isn’t just fighting the SEC in court. They also filed a petition with both the SEC and the Commodity Futures Trading Commission (CFTC) to clarify the rules around crypto derivatives. They want the CFTC to be in charge of these products, not the SEC.
The SEC and CFTC have 120 days to respond to the petition.
This is a big deal for the crypto industry. If Crypto.com wins, it could change how the SEC regulates crypto in the US.
