Key Takeaways
- Crypto.com has sued the SEC over potential regulation of token sales.
- The company seeks clarification on regulatory authority for crypto derivatives.
- Cronos (CRO) token dropped by 4.7% after the lawsuit announcement.
Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), including its Chair Gary Gensler and four commissioners, following the receipt of a Wells Notice from the regulator.
A Wells Notice typically signals potential charges from the SEC.
Filed by Foris DAX Inc., the lawsuit seeks to stop the SEC from expanding its jurisdiction over secondary-market sales of certain tokens traded on Crypto.com’s platform.
The company is asking for declaratory and injunctive relief to prevent what it deems unlawful actions by the SEC.
In addition to the lawsuit, Crypto.com has submitted a petition to both the SEC and the Commodity Futures Trading Commission (CFTC) for joint clarification on regulatory authority.
The filing specifically asks the agencies to confirm that certain cryptocurrency derivative products fall solely under CFTC regulation.
Following the announcement of the legal actions, the price of Cronos (CRO), the native token of the Cronos blockchain, dropped by 4.7%. This decline was noted after CEO Kris Marszalek’s post on social media platform X.
