CryptoCrypto Sues SEC Over Alleged Overreach in Cryptocurrency Regulation

Crypto Sues SEC Over Alleged Overreach in Cryptocurrency Regulation

On Tuesday, Crypto filed a lawsuit against the Securities and Exchange Commission (SEC) in Tyler, Texas, targeting SEC chair Gary Gensler and four other commissioners. This legal action follows a Wells notice issued by the SEC, warning the exchange of impending litigation.

Crypto CEO Kris Marszalek criticized the SEC’s actions on X (formerly Twitter), stating, “The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must stop.” The lawsuit argues that the SEC has exceeded its jurisdiction and unlawfully classified nearly all cryptocurrency transactions as securities.

The SEC claims Crypto was operating as an unregistered broker-dealer and securities clearing agency, allegations the company disputes, asserting that cryptocurrencies do not fall under SEC regulation. Founded in Hong Kong in 2016, Crypto boasts over 80 million registered users and is well-known in the U.S., notably after rebranding the Staples Arena in Los Angeles in 2021.

Crypto’s lawsuit aims to safeguard the digital asset sector, which has consistently opposed the SEC’s enforcement efforts. Earlier this year, the SEC issued similar notices to Robinhood, Coinbase, and OpenSea regarding potential securities violations. Additionally, Crypto is urging the Commodity Futures Trading Commission (CFTC) to clarify that crypto derivatives should be regulated solely by the CFTC.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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