Cryptocurrency exchange Crypto.com confirmed that it received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) and decided to file a lawsuit with the SEC. Crypto.com claimed that the SEC had excessively expanded its jurisdiction and also refuted The agency’s assertion that most cryptocurrencies are securities.

Crypto.com confirmed that it has received a Wells Notice, which is a formal notice that the U.S. Securities and Exchange Commission (SEC) intends to file charges against defendants, including Uniswap, Consensys, Robinhood, and Coinbase, all of which began receiving Wills last year. Notice.

Crypto.com believes that although both parties have stated that the next administration will take a more constructive and effective approach to advance the development of the cryptocurrency field, the SEC’s unauthorized and unfair enforcement activities continue to regulate.

The SEC unilaterally expanded its jurisdiction beyond statutory limits and also subjectively determined that virtually all transactions in cryptoassets were securities transactions regardless of the sale. The rule never went through the notice and comment period required by the Administrative Procedure Act, and the agency's application was arbitrary and capricious.

Crypto.com decided to use litigation to stop the SEC from exceeding its authority and violating federal law and actively defend itself with other peers to protect the future of the U.S. cryptocurrency industry.

According to previous reports, Crypto.com benefited from last year’s bull market and successfully achieved the largest growth in trading volume, and successfully divided up the market share of large exchanges including Kraken and LMAX Digital, performing very well.

(Exchange S2 Market Report: Crypto.com performed outstandingly, and Bybit became the biggest winner after the collapse of FTX?)

This article Crypto.com received notification from Wells and has filed a lawsuit with the SEC first appeared on Chain News ABMedia.