Cryptocurrency trading platform Crypto.com has reportedly filed a case against the US Securities and Exchange Commission (SEC). According to a Reuters report, the Singapore-based company alleges that the federal agency is overstepping its jurisdiction by regulating the cryptocurrency industry. Crypto.com recently received a ‘Wells notice’ from the SEC stating that tokens traded on its platform qualified as securities.For those unaware, a Wells notice is a formal declaration that the regulator’s staff intend to recommend an enforcement action.

Crypto.com CEO responds

Taking to X (formerly Twitter), Crypto.com CEO Kris Marszalek said: “This unprecedented action by our company against a federal agency is a warranted response to the SEC’s regulation by enforcement regime which has hurt more than 50 million American crypto holders.”
“The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop,” he said in another post.

Crypto.com issues a statement

In a statement, the company said “Our lawsuit contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and separately that the SEC has established an unlawful rule that trades in nearly all crypto assets are securities transactions”.
Crypto.com has filed the case in a federal court in Tyler, Texas. The lawsuit names SEC Chair Gary Gensler and four other commissioners as defendants.
THe company has separately filed a petition with the Commodity Futures Trading Commission (CFTC) and the SEC, seeking a joint interpretation to confirm that certain cryptocurrency derivative products are exclusively regulated by the CFTC.

Not the only crypto platform to accuse CES of overreach

Crypto.com is not the only crypto trading platform that has accused US SEC of overreach and of violating its jurisdiction. Retail trading platform Robinhood‘s crypto business, major U.S. crypto exchange Coinbase and NFT marketplace OpenSea are among the companies in the digital assets industry that have received similar notices from the SEC.