The Securities and Exchange Commission (SEC) has been sued by Crypto.com after the crypto company received a Wells notice from the regulatory agency.
The notice is typically a signal of impending enforcement action. In a press release, Crypto.com stated that they had no other choice but to file this lawsuit due to the actions of the SEC towards the cryptocurrency industry.
The suit contends that the SEC has overstepped its authority by expanding its jurisdiction and has also established an illegal rule classifying all crypto asset trades as securities transactions, while trades in bitcoin and ether are somehow exempt.
According to the lawsuit, Crypto.com received the Wells notice in August, which stated that the SEC would recommend pursuing enforcement action against the company on the grounds that some network tokens sold on the platform are considered crypto asset securities.
However, the SEC has not provided a complete list of these tokens to Crypto.com.
