Crypto.com Sues SEC

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Currency exchange Crypto.com has taken legal action against the US Securities and Exchange Commission (SEC), its Chair Gary Gensler, and its four commissioners.

The lawsuit alleges that the SEC exceeded its authority by expanding its jurisdiction to include oversight of the US digital assets industry without proper legal authorization.

Recently, the SEC sent Crypto.com a “Wells notice,” indicating that it intends to pursue enforcement action against the exchange.

In a separate legal filing, Crypto.com has asked both the Commodity Futures Trading Commission (CFTC) and SEC to clarify that certain cryptocurrency derivative products fall solely under the jurisdiction of the CFTC.

The lawsuit was filed by Crypto.com’s parent company, Foris DAX Inc., in the federal court of Tyler, Texas. The suit seeks both a declaratory judgment and injunctive relief to prevent the SEC from overstepping its authority and regulating the secondary-market sales of specific network tokens on Crypto.com’s platform.