Crypto.com vs. SEC: Demands Regulatory Clarity
Zameer Attar9 Oct 20242 min read
The major cryptocurrency exchange in the United States, Crypto.com, has filed suit against the Securities and Exchange Commission (SEC) after receiving a notice from the agency. In a recent report, the exchange noted that it is doing this to protect the future of the crypto industry in the country.
Why did Crypto.com sue the SEC?
Looking at the current situation Kris Marszalek, co-founder and CEO of Crypto.com made a post on X (Previously Twitter) and shared a detailed report,
“We are doing so to protect the future of the crypto industry in the U.S., joining a series of our peers who are actively defending themselves and taking action against a misguided federal agency acting beyond its authorization under the law.”
Additionally, the report Marszalek shared noted that the SEC is still trying to regulate crypto unfairly, which is why they decided to sue them. Although it’s unusual for our firm to sue a federal agency, the SEC’s recent action has forced us to take this step.
Crypto.com’s Demands
Besides this, Crypto.com asked the CFTC and SEC to confirm if certain cryptocurrency derivative products are regulated only by the CFTC. The firm also mentioned that under the Dodd-Frank Act, anyone can ask these agencies to clarify whether a product is a “swap,” “security-based swap,” or “mixed swap.”
The agencies have 120 days to either issue a jointly approved interpretation or deny it, but they must explain why. The firm also added that they can also consult with the Federal Reserve Board if needed.
Firm Registration and Licenses
The crypto.com highlighted that in the U.S. the firm is registered with FinCEN and also holds more than 40 state money transmitter licenses. They also added,
“These licenses and registrations demonstrate our commitment to compliance with all of the various regulatory regimes in the U.S. that are applicable to our business.”
The firm believes that in the cryptocurrency landscape security and compliance are the base of cryptocurrency adoption, and all of what we do is done with safety, security, and compliance.
In addition, they added, “ We are proud to be the industry’s global leader for licenses, registrations, and security certifications – maintaining more than 100 regulatory approvals to operate in jurisdictions around the world and supporting the design of regulatory frameworks built for purpose and today’s digital economy, along with best-in-class safety and security certifications.”
