EddieJayonCrypto
8 Oct 24
Singapore-based cryptocurrency giant Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission, challenging the agency's regulation-by-enforcement approach. CEO Kris Marszalek argues that the SEC's actions have harmed millions of American cryptocurrency holders. Prior to the...
Singapore-based cryptocurrency giant Crypto.com has taken the unprecedented step of filing a lawsuit against the U.S. Securities and Exchange Commission (SEC), challenging the agency's regulation-by-enforcement approach. CEO Kris Marszalek argues that the SEC's actions have harmed millions of American cryptocurrency holders. This legal action follows Crypto.com receiving a Wells Notice from the SEC prior to the lawsuit, indicating an investigation but not necessarily enforcement action.
Marszalek described the legal action as "unprecedented," arguing that it is a "warranted response" to the agency's controversial regulation-by-enforcement approach. The company, boasting over 80 million customers worldwide, has accused the SEC of inappropriately expanding the boundaries of its jurisdiction beyond the limits of existing statutory authority. Prior to the lawsuit, Consensys, an Ethereum development studio, also preemptively took the SEC to court.
This move by Crypto.com adds to the growing legal tension between major cryptocurrency entities and the SEC, with Coinbase, Binance, and Ripple all embroiled in legal battles, and the SEC having filed an appeal in the Ripple case.