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A Wells Notice was sent by the Securities and Exchange Commission to Crypto.com, alerting the digital asset trading platform to the possibility of enforcement action. When the commission believes securities breaches have taken place, SEC officials deliver a Wells Notice. Following a notice to a company, the SEC could or might not decide to forward with litigation. Reacting to the regulatory documentation, Crypto.com sued to prohibit the SEC from unilaterally extending its authority "beyond statutory limits." The company said it would vigorously defend itself against what it claimed to be a foolish government agency and join industry colleagues in solidarity against the securities regulator. CEO Kris Marszalek of Crypto.com claims that the SEC has to follow court decisions and curb its illegal overreach towards cryptocurrencies.
Today, https://t.co/pFc4Pz9nFR filed suit against the SEC to protect the future of crypto in the U.S.: https://t.co/kXxyhF7zFe
— Kris | Crypto.com (@kris) October 8, 2024
In the months leading up to the U.S. presidential elections, tensions have grown between the crypto business and the SEC. People who support digital assets have been complaining for years that the government doesn't have clear rules. The SEC, led by Gary Gensler, has repeatedly said that crypto companies are breaking securities laws and refusing to follow them. The way Gensler works has led to many Wells Notices being sent to companies like Uniswap, OpenSea, and Robinhood. Prosecutors from the SEC have also taken action against Bittrex, Coinbase, and other crypto service providers. Even though Gensler is very persistent, U.S. judges have thrown out some SEC claims, such as the Ripple case. In a suggested revised file against Binance, the Wall Street regulator also took out the term "crypto-asset securities" from cases, saying that it was never a real term. The agency also dropped claims that a stablecoin made by Paxos was an unlisted asset. This cleared up any questions about stablecoins in the United States.
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Brenda has been a news writer since 2019 with a deep background in crypto. Brenda commits to producing excellent, well-optimized content to ensure consumer satisfaction.
