The platform Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) to safeguard the future of the crypto industry in the country.
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
The decision came after the firm received a Wells notice. This type of letter is used by the agency to inform individuals and companies of violations found during investigations, which may lead to a civil lawsuit.
Crypto.com also requested a joint interpretation of the concept of crypto derivatives from the SEC and the CFTC.
The company noted that the agencies have 120 days to formulate a response or reject the request.
According to Crypto.com, the platform holds money transmitter licenses and is registered with the FinCEN in more than 40 states. The company’s branches have been approved as participants in the markets for contracts and derivative products.
“These licenses and registrations demonstrate our commitment to complying with various regulatory regimes in the U.S. that apply to our business. We believe that security and compliance are the foundation for achieving mass adoption of cryptocurrency, and we do everything with this in mind,” the press release states.
Co-founder and CEO of Crypto.com Kris Marszalek emphasized the need to curb the “overreach of the SEC within the crypto industry.”
“Recent decisions have made it clear that crypto itself is not a security and thus does not constitute an investment contract merely because it changes hands,” he stressed.
Earlier, Crypto.com emerged as one of the main beneficiaries of Binance’s reduced market share in the centralized exchange segment.