Crypto.com receives Wells notice, files lawsuit against SEC

The cryptocurrency exchange Crypto.com (Foris DAX Inc.) has confirmed that it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) and has decided to sue the SEC. Crypto.com stated that the SEC has overly expanded its jurisdiction and also refuted the agency's claim that most cryptocurrencies are securities.

Crypto.com has confirmed receipt of a Wells notice, which is a formal notification from the U.S. Securities and Exchange Commission (SEC) indicating the agency's intent to bring charges against the recipient. Companies such as Uniswap, Consensys, Robinhood, and Coinbase all received Wells notices last year.

According to the complaint, the SEC considers the sale of tokens including SOL, ADA, BNB, FIL, FLOW, ICP, ATOM, ALGO, NEAR, and DASH on its platform as securities transactions.

Crypto.com believes that despite both parties indicating that the next administration will take a more constructive and effective approach to advancing the cryptocurrency sector, the SEC's unauthorized and unfair regulatory enforcement activities continue.

The SEC unilaterally expands its jurisdiction beyond statutory limits and subjectively determines that almost all cryptocurrency asset transactions, regardless of how they are sold, are securities transactions. This rule has never undergone the required notice and comment period under the Administrative Procedure Act, and the agency's application of it is arbitrary and capricious.

Crypto.com has decided to block the SEC from exceeding its authority and engaging in illegal conduct in violation of federal law through litigation. It is actively defending itself with other industry players to protect the future of the U.S. cryptocurrency industry.

Previous reports indicated that Crypto.com benefited from last year's bull market, achieving the largest increase in trading volume and successfully capturing market share from major exchanges like Kraken and LMAX Digital, demonstrating outstanding performance.

Exchange S2 Market Report: Crypto.com shines, Bybit emerges as the biggest winner post-FTX collapse?