Crypto.com has filed a lawsuit against the US Securities and Exchange Commission (SEC), accusing the regulator of overstepping its authority in pursuing the cryptocurrency exchange for the alleged sale of unregistered tokens.
This move comes after Crypto.com received a Wells notice, a formal warning that the company may face legal action.
The Singapore-based exchange is the latest crypto firm to clash with the SEC, which has targeted several leading industry names – including Coinbase, Kraken, Binance, and Ripple Labs — for allegedly offering unregistered securities.
The SEC’s intensified scrutiny of the crypto space has drawn criticism from executives and investors alike, many of whom accuse the agency of engaging in “regulation by enforcement.”
In a bold response, Crypto.com CEO Kris Marszalek announced that the company had initiated legal action to defend the future of the US crypto industry.
“The SEC’s unauthorised over-reach and unlawful rulemaking regarding crypto must stop,” Marszalek said. He argued that the tokens under scrutiny, including Solana, Cardano, and Binance’s BNB, should not be treated differently from more established cryptocurrencies like Bitcoin and Ether.
The lawsuit, filed against the SEC, Chairman Gary Gensler, and four other commissioners, challenges the regulator’s jurisdiction over these sales.
Marszalek reiterated the company’s commitment to the US market, despite the regulatory challenges. “We continue to be very bullish on the US crypto market and our imminent plans to expand our offerings to US customers,” he stated on X (formerly Twitter).
The lawsuit underscores growing tensions between the SEC and the cryptocurrency industry, as firms rally for clearer regulations and less aggressive enforcement.
Crypto.com has also petitioned the Commodity Futures Trading Commission (CFTC) to take the lead in regulating certain crypto derivatives, arguing that the CFTC is better suited to oversee these products.
As the crypto industry faces mounting legal pressure, the outcome of Crypto.com’s lawsuit could have far-reaching implications for the regulation of digital assets in the US and beyond.
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