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Homepage > News > Business > Crypto.com sues SEC; Tether not enjoying EU clarity Crypto.com has filed a pre-emptive lawsuit against America’s securities regulator while Tether is finding life under European regulations hard to handle. On October 8, Crypto.com announced that it had filed a lawsuit against the Securities and Exchange Commission (SEC) and its controversial chairman, Gary Gensler, following the digital asset exchange’s receipt of a Wells notice on August 22. A Wells notice indicates that the regulator has concluded its probe of an individual/entity and found sufficient evidence of wrongdoing to pursue an enforcement action. The 48-page lawsuit was filed by Crypto.com’s parent company Foris Dax in the U.S. District Court for the Eastern District of Texas, Tyler Division. The suit centers on Crypto.com’s assertion that the SEC has no jurisdiction over “secondary-market sales of certain network tokens” offered on the exchange. The ‘Targeted Network Tokens’ in question are SOL, ADA, BNB, FIL, FLOW, ICP, ATOM, ALGO, NEAR and DASH, the sale of which the SEC evidently believes constitutes an investment contract under the Howey test for identifying securities. (The SEC has stated some but not always all of the above tokens in earlier enforcement actions, including those against Binance, Coinbase (NASDAQ: COIN) and Kraken exchanges, as well as a suit charging insider trading against an ex-Coinbase staffer and his accomplices. A suit filed against the Ethereum-focused blockchain software outfit Consensys cited additional tokens not listed above.) Crypto.com wants the court to declare that the above tokens “are not securities or sold as part of a securities transaction and that it does not operate as an unregistered securities broker-dealer or securities clearing agency with respect to those sales.” Crypto.com is adopting the stance taken by Ripple Labs, which secured a favorable federal court ruling in July 2023 regarding…

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Filed under: News - @ October 10, 2024 1:20 pm