Crypto.com sues SEC after receiving legal threat from US regulator

Crypto.com has filed a lawsuit against the SEC, accusing the agency of overreach in its efforts to regulate the cryptocurrency industry. The crypto trading platform said its move follows the receipt of a Wells notice – a formal declaration that an enforcement action is to be recommended – from the markets regulator on the grounds that tokens traded on its platform qualified as securities. “Our 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,” Crypto.com said. The case, filed in a federal court in Tyler, Texas, also names SEC Chair Gary Gensler and four other commissioners as defendants.