Crypto.com has filed a lawsuit against the U.S. SEC, alleging the commission's unlawful jurisdiction expansion, causing harm to the crypto industry.

Grounds for the Lawsuit

Crypto.com argues that the SEC has overstepped its authority by classifying most cryptocurrencies as securities without proper procedure, creating uncertainty for compliant businesses.

Regulatory Issues

Crypto.com claims that the SEC invented a new category, 'Crypto Asset Security,' without following proper rulemaking procedures, causing confusion and restricting lawful business operations.

Seeking Regulatory Clarity

Crypto.com has filed a petition with the CFTC and the SEC to clarify which agency regulates certain cryptocurrency derivatives. Despite the lawsuit, the company remains committed to compliance, being registered with FinCEN and holding over 40 state money transmitter licenses.

Crypto.com's lawsuit is part of a broader industry pushback against what is perceived as unfair regulatory enforcement by the SEC. Uniswap also intends to file a similar lawsuit.