The cryptocurrency trading platform announced that it decided to sue the agency after receiving a Wells Notice. In this regard, he stated that the SEC’s actions left them with “no choice.” Crypto.com argues that its lawsuit overextends the SEC’s jurisdiction. He also emphasizes that the agency pushes back on the claim that most cryptocurrencies are securities.
SEC sent Wells Notice to cryptocurrency exchange, faced lawsuit!
Cryptocurrency exchange Crypto.com announced that it has received a Wells Notice from the SEC. Following this, the exchange said that it filed a lawsuit against the SEC, along with its Chairman Gary Gensler and four commissioners. The court filed the application against Foris DAX Inc., a company incorporated under the laws of the state of Delaware and operating under the trade name Crypto.com. did.
Wells notices are preliminary warnings that notify buyers of charges that the regulator is considering bringing against them. They often lead to enforcement actions. In the lawsuit, Crypto.com “seeks declaratory and injunctive relief to prevent the Securities and Exchange Commission (“SEC”) from unlawfully extending its jurisdiction to include secondary market sales of certain network tokens sold on Crypto.com’s platform.” ” it was stated. Separately, Crypto.com filed a petition “to the CFTC and SEC to confirm, through joint comment, that certain cryptocurrency derivative products are regulated solely by the CFTC.”
Crypto world grapples with SEC lawsuits
cryptokoin.comAs you follow from Foris DAX Inc. It’s not the first crypto company to file a lawsuit with the SEC. Consensys sued the SEC in April, in part over how the agency categorized Ethereum as a security. Coinbase has filed multiple lawsuits against the SEC, including for failing to provide clear rulemaking for digital assets.
The SEC constantly warns that cryptocurrency exchanges must register with the SEC. Meanwhile, crypto firms argue that it is not possible to register with the SEC. They argue that there are rules for more traditional assets that differ in part from the crypto industry. The SEC has also taken legal action against major crypto firms such as Coinbase, Kraken, and Binance. This pressure from the regulatory authority on the crypto industry brings with it reactions. SEC Chairman Gary Gensler, in particular, is in the crosshairs of crypto advocates.
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