Cryptocurrency

Future

United

<p>In a surprising turn of events, major cryptocurrency exchange and service provider Crypto.com has filed a lawsuit against the United States Securities and Exchange Commission. It has aimed to question the regulatory practices of the latter in general while pointing at the “regulation by enforcement” approach that is believed to have affected over 50 million US-based cryptocurrency holders in an adverse manner. The lawsuit follows the Wells notice, which is usually an indication that the agency believes it has enough grounds to begin an enforcement action against a company for violating securities laws.</p> 
<p>Kris Marszalek, co-founder and chief executive of Crypto.com, <a href="https://x.com/kris/status/1843642492518051978" target="_blank" rel="noopener nofollow">announced the legal battle</a> via social media platform X, formerly known as Twitter, on Oct 8. He referred to the lawsuit as “an unprecedented action” for the company, adding that it was a requisite response to what he thought were unfair regulatory actions by the SEC. In his statement, Marszalek made a point of letting it be known that protection of the future of the cryptocurrency industry in the U.S. puts Crypto.com in line with a growing number of crypto firms defending against what they see as misdirected and misguided actions by the SEC.</p> 
<p><img loading="lazy" decoding="async" class="size-full wp-image-22187 aligncenter" src="https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.21-A-futuristic-courtroom-scene-with-advanced-technology-and-digital-screens-showing-crypto-symbols-with-the-Crypto.com-legal-team-on-one-side-confiden.webp" alt="Crypto.com Files Lawsuit Against SEC to Defend U.S. Crypto Industry" width="1792" height="1024" title="Crypto.com Files Lawsuit Against SEC to Defend U.S. Crypto Industry 6" srcset="https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.21-A-futuristic-courtroom-scene-with-advanced-technology-and-digital-screens-showing-crypto-symbols-with-the-Crypto.com-legal-team-on-one-side-confiden.webp 1792w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.21-A-futuristic-courtroom-scene-with-advanced-technology-and-digital-screens-showing-crypto-symbols-with-the-Crypto.com-legal-team-on-one-side-confiden-768x439.webp 768w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.21-A-futuristic-courtroom-scene-with-advanced-technology-and-digital-screens-showing-crypto-symbols-with-the-Crypto.com-legal-team-on-one-side-confiden-1536x878.webp 1536w" sizes="(max-width: 1792px) 100vw, 1792px"></p> 
<h2 id="crypto-com-arguments-against-sec-overreach">Crypto.com Arguments Against SEC Overreach</h2> 
<p>Crypto.com said in a statement that the judgment showed new dedication to the protection of the crypto industry and really required a “more constructive regulatory framework.” Marszalek said his firm will use “all regulatory tools available” in an effort to force some clarity and proper rulemaking in the industry. To that effect, Crypto.com has also written to the Commodity Futures Trading Commission, the CFTC, and the SEC seeking clarification of crypto derivative products.</p> 
<p>This lawsuit comes after Crypto.com received the Wells notice, which the company states is typical of the SEC’s “unauthorized and unfair regulation by enforcement.” It continues that this practice persists notwithstanding bipartisan calls for a more pragmatic approach from the upcoming administration. Crypto.com expressed frustration over what it deems improper SEC enforcement practices, which have become endemic to all licensed crypto operators in the United States.</p> 
<p>Crypto.com also alleged in its complaint that the SEC acted in excess of its statutory authority by attempting to increase its jurisdiction without adequate underlying legal support. The firm opined that the agency had promulgated a de facto rule that advances the notion that virtually all cryptocurrency asset-based transactions are securities transactions, regardless of how they are transacted. This view towards securities regulation has greatly concerned the crypto community, and firms like Crypto.com have pushed back against what they see as agency overreach.</p> 
<h2 id="regulatory-clarity-seeking-joint-interpretation-with-the-cftc">Regulatory Clarity – Seeking Joint Interpretation with the CFTC</h2> 
<p>Notwithstanding the legal hurdles, Crypto.com has secured rights for its users, promising them business as usual. It reiterated that its quest for “crypto in every wallet” does not change. This is a statement of resolve to keep up the provision of service and products before the customers as it works out the labyrinth called regulation.</p> 
<p>Moreover, Crypto.com has asked the CFTC and the SEC to make a formal ruling through a joint interpretation on the status of regulation for some cryptocurrency derivative products. It reiterated that under the Dodd-Frank Act, market participants are entitled to ask whether a particular product is considered a “swap,” a “security-based swap,” or a “mixed swap.” According to Crypto.com, these regulators must respond within 120 days either by issuing a jointly prepared interpretation or declining a request with a full explanation as to why it has been turned down.</p> 
<p><img loading="lazy" decoding="async" class="size-full wp-image-22189 aligncenter" src="https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.24-A-courtroom-scene-with-media-reporters-outside-the-courthouse-covering-the-Crypto.com-lawsuit-against-the-SEC.-The-courthouse-is-surrounded-by-journal.webp" alt="Crypto.com Files Lawsuit Against SEC to Defend U.S. Crypto Industry" width="1792" height="1024" title="Crypto.com Files Lawsuit Against SEC to Defend U.S. Crypto Industry 7" srcset="https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.24-A-courtroom-scene-with-media-reporters-outside-the-courthouse-covering-the-Crypto.com-lawsuit-against-the-SEC.-The-courthouse-is-surrounded-by-journal.webp 1792w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.24-A-courtroom-scene-with-media-reporters-outside-the-courthouse-covering-the-Crypto.com-lawsuit-against-the-SEC.-The-courthouse-is-surrounded-by-journal-768x439.webp 768w, https://www.turkishnyradio.com/wp-content/uploads/2024/10/DALL·E-2024-10-09-14.13.24-A-courtroom-scene-with-media-reporters-outside-the-courthouse-covering-the-Crypto.com-lawsuit-against-the-SEC.-The-courthouse-is-surrounded-by-journal-1536x878.webp 1536w" sizes="(max-width: 1792px) 100vw, 1792px"></p> 
<h2 id="implications-for-the-future-of-the-cryptocurrency-industry-in-the-u-s">Implications for the Future of the Cryptocurrency Industry in the U.S.</h2> 
<p>The lawsuit filed against the SEC and the petitions addressed to the CFTC and the SEC represent Crypto.com’s proactive attitude in seeking clarity and justice from regulators within the dynamically changing crypto world. This would be a very important result of this legal fight because the cryptocurrency industry is still at the maturity stage, and it would drastically change how cryptocurrencies and related products will be regulated in the U.S., thereby setting the future direction of the market and influencing other companies facing similar challenges. Put in a broader perspective, the lawsuit can be understood as part of the struggle of the greater industry to establish a clear, reasonable regulatory framework that balances innovation with consumer protection.</p> 
<p>Stay connected with <a href="https://www.turkishnyradio.com/" target="_blank" rel="noopener">TurkishNY Radio</a> by following us on <a href="https://x.com/TNYR_News" target="_blank" rel="noopener nofollow">Twitter </a>and <a href="https://www.linkedin.com/company/turkishny-radio/" target="_blank" rel="noopener nofollow">LinkedIn</a>, and join our <a href="https://t.me/tnyr_news" target="_blank" rel="noopener nofollow">Telegram</a> channel for more news.</p>

Crypto.com Files Lawsuit Against SEC to Defend U.S. Crypto Industry

Table of Contents

TNYR

Other articles published on Oct 9, 2024

Miris! Dana Bantuan Dikorupsi untuk Investasi Kripto

TRUMESEC Solana Memecoin Will Rally 18,000% Ahead of First Exchange Listing, While Shiba Inu and ...

Scroll Community Critiques SCR Token Allocation to Binance Launchpool

PayPal Opens Cryptocurrency Market to U.S. Business Accounts

Crypto Expert Lists 10 Best Meme Coins to Buy For The Next Bull Run – Dogwifhat, Pepe, Popcat

Coinbase Enhances Bitcoin Transactions with Taproot Support

Join our free newsletter for daily crypto updates!