Crypto.com believes this action is necessary to protect the future of the cryptocurrency industry in the United States.
They are joining other companies in standing up to what they see as a federal agency overstepping its bounds.
Crypto.com Takes On the SEC
The exchange is responding to a Wells notice they received from the SEC. This indicates that the agency is trying to impose rules that they believe are unfair and not legally justified.
Crypto.com argues that the SEC is trying to extend its authority beyond what the law allows. They claim that the SEC has created a confusing rule stating that most trades involving cryptocurrencies are considered securities transactions. However, similar transactions with popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH) are not treated the same way. This inconsistency, according to Crypto.com, is unfair and doesn’t follow the proper legal processes.
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 SEC didn’t allow the public to comment on this new rule, which is something that should have happened under federal law. Crypto.com feels that the SEC’s actions are not only arbitrary but also go against the law.
In their lawsuit, Crypto.com wants to put a stop to what they see as the SEC’s illegal actions. They believe these actions threaten the entire crypto industry and make it hard for legitimate businesses to operate. They have made detailed information about their lawsuit available to the public, highlighting their concerns about the SEC’s approach to regulation.
https://t.co/5IAvDaScly just filed a lawsuit against the SEC, asserting that the agency lacks the authority from Congress to regulate secondary market sales of crypto and challenging its ongoing practice of using enforcement actions to unlawfully expand its oversight of the… https://t.co/QvYM9vasgO
— justin wales (@bitcoin_wales) October 8, 2024
Additionally, Crypto.com’s North American division has reached out to both the SEC and the Commodity Futures Trading Commission (CFTC) with a petition. They want to clarify that certain cryptocurrency products should only be regulated by the CFTC. By using this petition under the Dodd-Frank Act, they hope to bring more clarity to the rules governing the industry.
This joint rulemaking allows anyone to ask the SEC and CFTC whether a product is a “swap” or a “security-based swap.” If the agencies deny this request, they must provide a written explanation.
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