On Tuesday, Crypto filed a lawsuit against the Securities and Exchange Commission (SEC) in Tyler, Texas, targeting SEC chair Gary Gensler and four other commissioners. This legal action follows a Wells notice issued by the SEC, warning the exchange of impending litigation.
Crypto CEO Kris Marszalek criticized the SEC’s actions on X (formerly Twitter), stating, “The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop.” The lawsuit argues that the SEC has exceeded its jurisdiction and unlawfully classified nearly all cryptocurrency transactions as securities.
The SEC claims Crypto was operating as an unregistered broker-dealer and securities clearing agency, allegations the company disputes, asserting that cryptocurrencies do not fall under SEC regulation. Founded in Hong Kong in 2016, Crypto boasts over 80 million registered users and is well-known in the U.S., notably after rebranding the Staples Arena in Los Angeles in 2021.
Crypto’s lawsuit aims to safeguard the digital asset sector, which has consistently opposed the SEC’s enforcement efforts. Earlier this year, the SEC issued similar notices to Robinhood, Coinbase, and OpenSea regarding potential securities violations. Additionally, Crypto is urging the Commodity Futures Trading Commission (CFTC) to clarify that crypto derivatives should be regulated solely by the CFTC.
Related Topics:
