Crypto.com has taken bold action, suing the U.S. Securities and Exchange Commission (SEC) over its broad classification of cryptocurrency transactions. This lawsuit follows a Wells notice from the SEC, which warned of potential legal action for alleged securities violations.
Crypto.com argues that the SEC is overreaching by labeling most crypto transactions as securities while exempting Bitcoin and Ethereum. The exchange claims this inconsistency unfairly targets nearly all other digital assets.
The lawsuit also accuses the SEC of bypassing legal protocols under the Administrative Procedure Act, putting the U.S. crypto industry’s future at risk. Crypto.com aims to stop what it sees as the SEC’s unlawful power grab.
This legal battle marks a major turning point in the ongoing clash between crypto companies and regulators. Its outcome could reshape how securities laws are applied in the digital age.
