Crypto.com filed a lawsuit against the US Securities and Exchange Commission after receiving Wells notice, signaling future prosecution. The SEC seeks to cast most crypto transactions as securities transactions, greatly tightening restrictions on the industry.

Crypto.com is not the first company to file a preemptive lawsuit over this issue, but as of yet, there is no clear conclusion.

Crypto.com CEO Responds to Wells Notice

The development began on the morning of October 8, when the SEC sent a Wells notice to Crypto.com. A Wells notice is a declaration from the SEC that its investigation of a company is over, and that it seeks to prosecute it. In response, Crypto.com’s CEO Kris Marszalek announced that he would sue the SEC first.

“This unprecedented action by our company against a federal agency is a warranted response to the SEC’s regulation by enforcement regime which has hurt more than 50 million American crypto holders. The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop,” Marszalek said.

Read more: What Does It Mean To Receive a Wells Notice From the SEC?

Crypto.com’s official statement regarding this lawsuit was direct and bellicose. It claimed that improper attacks from the SEC are “part of the process” of running a legitimate exchange, and that regulator actions against the industry left Crypto.com with “no other choice”. It even added that this prosecution goes against the growing bipartisan pro-crypto consensus in gover

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Author: Landon Manning