Crypto exchange files lawsuit against US market regulator
Date
10/24/2024 8:52:12 AM
(MENAFN) Cryptocurrency exchange Cryptohas initiated a lawsuit against the U.S. Securities and Exchange Commission (SEC), claiming that the regulatory body has exceeded its legal authority in overseeing the crypto industry. This move follows the receipt of a Wells Notice from the SEC, which is a formal indication that the agency plans to recommend enforcement action against the company.
In a statement released on the company’s website, Cryptoexpressed its intent to protect the future of the cryptocurrency industry from what it describes as the SEC's “unauthorized and unjust” regulatory actions. A Wells Notice serves as a warning to companies that the SEC may pursue legal action, and several other notable firms in the digital asset space, such as retail trading platform Robinhood, major exchange Coinbase, and NFT marketplace OpenSea, have also received similar notices.
Cryptoargues that the SEC has unilaterally broadened its jurisdiction beyond its statutory limits, asserting that the agency has created an unlawful rule categorizing nearly all cryptocurrency trades as securities transactions, regardless of how they are conducted. The company’s lawsuit aims to halt what it perceives as the SEC’s illegal actions, which it claims violate federal law and exceed the commission’s authority.
In addition to the lawsuit, Cryptohas filed a petition with both the Commodity Futures Trading Commission (CFTC) and the SEC, seeking a joint interpretation to clarify that certain cryptocurrency derivative products fall solely under the CFTC's regulatory purview. This legal action highlights the ongoing tensions between cryptocurrency exchanges and U.S. regulatory bodies as the industry navigates a complex and evolving regulatory landscape
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