Crypto.com receives Wells Notice from SEC

Crypto.com contests SEC's broad application of securities laws.

Key Takeaways

• Crypto.com has filed a lawsuit against the SEC over its crypto regulations.
• The company challenges the SEC's rule that treats most crypto transactions as securities.

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Crypto.com confirmed Tuesday it received a Wells Notice from the Securities and Exchange Commission (SEC), which indicates that SEC staff believe the company may have violated federal securities laws.

In response, the company initiated a lawsuit against the SEC, claiming that the regulator has overstepped its statutory jurisdiction by deeming nearly all crypto transactions as securities dealings, unfairly excluding similar transactions in Bitcoin (BTC) and Ether (ETH).

The company argues that the SEC’s rule was implemented without the mandatory notice and comment period as required by the Administrative Procedure Act, labeling the enforcement as arbitrary and capricious.

The lawsuit is part of a broader effort by Crypto.com to halt what it views as illegal overreach by the SEC.

This is a developing story.

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