Crypto.com has launched a legal counterstrike against the U.S. Securities and Exchange Commission (SEC), accusing the agency of going beyond its legal boundaries in regulating the cryptocurrency industry. The lawsuit follows the SEC’s issuance of a Wells notice, a formal signal of impending enforcement, claiming that tokens on Crypto.com’s platform qualify as securities—something the exchange adamantly refutes.
In a scathing response, Crypto.com’s lawsuit argues that the SEC has “unilaterally expanded its jurisdiction” and imposed an unlawful rule that casts nearly all crypto trades as securities transactions. The SEC, which declined to comment, insists its actions are about protecting investors, while crypto firms accuse the regulator of trying to stifle innovation through overreach.
This legal showdown marks a significant escalation in the tug-of-war between crypto companies and U.S. regulators, with the outcome likely to reverberate across the entire industry.