Cryptocurrency Exchanges Sue SEC To Halt Potential Enforcement Actions

According to a recent article and a company press release, cryptocurrency exchange Crypto.com has sued the U.S. Securities and Exchange Commission (SEC) following the company's receipt of a "Wells" notice of potential enforcement, which alleges that the company is acting as an unregistered broker-dealer and clearing agency. Crypto.com's lawsuit reportedly seeks to bar the SEC from bringing an enforcement action alleging secondary trading in 10 digital assets on the company's platform constitutes securities transactions. According to a statement by the company, their lawsuit "contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and separately that the SEC has established an unlawful rule that trades in nearly all crypto assets are securities transactions no matter how they are sold, whereas identical transactions in bitcoin (BTC) and ether (ETH) are somehow not." According to the press release, the company asserts that such a rule did not go through the notice and comment period required by the Administrative Procedures Act and that the SEC's application of the rule is arbitrary and capricious.

In a similar action, according to reports, cryptocurrency exchange Bitnomial has filed a lawsuit alleging the SEC has wrongfully asserted that XRP Futures are security futures subject to joint jurisdiction by the SEC and the U.S. Commodity Futures Trading Commission (CFTC). Bitnomial's lawsuit reportedly alleges the XRP Futures at issue fall solely under the jurisdiction of the CFTC.

For more information, please refer to the following links:

• Crypto.com Sues SEC Over 'Unlawful' Crypto Approach
• Crypto.com Has Filed Suit Against the SEC to Protect the Future of Crypto in the U.S.
• Bitnomial Exchange Sues U.S. SEC, Alleging Regulatory Overreach

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