- The exchange says the goal of the lawsuit is to protect the future of the cryptocurrency industry in the country
- The exchange accuses the SEC of expanding its jurisdiction beyond statutory limits
- The exchange said it continues to be very bullish on the U.S. crypto market and its imminent plans to expand its offerings to U.S. customers
Crypto.com, a United States-based cryptocurrency exchange, has filed a lawsuit against the United States Securities and Exchange Commission. The exchange says the goal of the lawsuit is to protect the future of the cryptocurrency industry in the country.
The exchange's CEO and co-founder, Kris Marszalek, announced this on October 8 in a post on X, formerly Twitter.
“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,” he posted. And to use all regulatory tools available to bring certainty to the industry through proper rulemaking, Crypto.com has also filed a petition with the CFTC and SEC to confirm crypto derivative products categorization.”
Source: Crypto.com
He further explained that “While we welcome recent bipartisan support for the industry, that message has not been received by current SEC leadership that issued us a Wells notice. The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop. Recent rulings have made clear that crypto is not itself a security and thus is not an investment contract simply because it changes hands. For this reason, and many others, we continue to be very bullish on the U.S. crypto market and our imminent plans to expand our offerings to U.S. customers.”
The exchange accused the SEC of expanding its jurisdiction beyond statutory limits and establishing an unlawful rule that trades in nearly all crypto assets are securities transactions no matter how they are sold.
To further establish through a joint interpretation that specific cryptocurrency derivative products are "solely regulated by the CFTC," Crypto.com also submitted a petition to the SEC and CFTC. It emphasised that any market participant is free to enquire with the CFTC and SEC about whether a product is a "swap," a "security-based swap," or a "mixed swap," citing joint rulemaking under the Dodd-Frank Act.
“Under these joint rules, the agencies have 120 days to either issue a jointly approved interpretation or to deny an interpretation,” Crypto.com stated.
In an official announcement on its website, the exchange explained, “We are doing so to protect the future of the crypto industry in the US, joining a series of our peers who are actively defending themselves and taking action against a misguided federal agency acting beyond its authorisation under the law.”
Crypto sponsorship of English premier league clubs hit £130 million in 2024
Meanwhile, TheRadar earlier reported that football clubs in the top tier of the English league, the Premier League, secured crypto sponsorship deals worth some £130 million in 2024 alone. This significant surge comes just two years after what experts describe as a global crypto downturn, which affected the valuation of several crypto firms and caused a massive decline in token values.
Data from SportQuake, as quoted by Bloomberg, shows that at the beginning of the Premier League 2024/25 season, sponsorship deals involving crypto firms and Premier League clubs were worth some £130 million ($170 million). This amount is likely to increase before the end of the season as more deals are anticipated.
