Crypto.com challenges SEC's authority over crypto assets, lawsuit outcome may impact U.S. regulations

From Nasdaq

October 08, 2024 2:35 PM:

Crypto.com has filed a lawsuit against the SEC, challenging the regulator’s jurisdiction over crypto assets. The SEC issued a Wells notice to Crypto.com, claiming tokens on its platform are securities. Other crypto companies like Robinhood and Coinbase have faced similar actions. The outcome could impact future regulations for digital assets in the U.S.

Crypto.com’s lawsuit accuses the SEC of unlawfully expanding its control over cryptocurrency markets. The case could influence how digital assets are regulated in the U.S. Crypto.com seeks clarity from the SEC and CFTC on crypto derivatives regulation. SEC Chair Gary Gensler and commissioners are defendants in the lawsuit, indicating the case’s significance.

The lawsuit shows a growing conflict between the SEC and the crypto industry. Crypto.com is pushing back against perceived regulatory overreach and aiming to clarify regulatory boundaries between the SEC and CFTC. The case’s outcome could set a precedent for how U.S. regulators approach cryptocurrency oversight, impacting the broader digital asset market.

Read more at NASDAQ: Crypto.com Takes Legal Action Against SEC’s Expanded Jurisdiction