In a rather surprising development, cryptocurrency exchange Crypto.com has officially received a Wells Notice from the US Securities and Exchange Commission (SEC). Indeed, the exchange confirmed the notice was received in a recent announcement that they have filed a lawsuit against the agency.
The company stated that the notice clearly shows the agency’s “unauthorized and unjust regulation by enforcement campaign,” which is a persistent issue. Therefore, they have taken legal action in response to the SEC’s action. Subsequently, it provides another layer to the ongoing disdain developing between the agency and the crypto industry.
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Crypto.com Gets Wells Notice From SEC, Files Lawsuit
Throughout the last several years, the SEC and crypto have stood in opposition. The agency has held firm to its belief that the industry is consistently looking to avoid proper disclosures to customers. Moreover, they have continued to embrace regulation through enforcement. Therefore, leaving crypto companies in a rather unfortunate position.
That stance continued Tuesday while taking an interesting turn. Cryptocurrency exchange Crypto.com had received a Wells Notice from the SEC. Indeed, the document is a notice that enforcement action is impending. Additionally, the move places the exchange in a long line of other firms in a similar position.
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Yet, in response, Crypto.com has filed a lawsuit against the agency. In a statement issued the same day, the firm noted they took the action “to protect the future of the crypto industry in the US,” and taking a stand alongside other crypto firms. Within the announcement, they also noted Derivatives North America is filing a petition with the CFTC and SEC to verify “crypto Derivatives Products Regulation.”
“For now, improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the US,” the exchange said. Although the move is unprecedented for Crypto.com, the company assured, “Actions by that agency towards our industry have left us no other choice.”