Crypto.com Challenges SEC in Major Legal Battle Over Jurisdiction

The lawsuit claims the SEC is overstepping its authority regarding cryptocurrency regulation, seeking judicial relief to protect the industry's future.

Crypto.com has filed a lawsuit against the SEC following a Wells Notice, accusing the agency of unlawfully expanding its jurisdiction over digital assets.
The company argues that its tokens are not securities under federal law and seeks a judicial declaration to prevent SEC enforcement.
This legal action is part of a broader industry pushback against the SEC's enforcement-driven approach under Chair Gary Gensler.
Crypto.com has invested heavily in sports partnerships, including deals with UFC and the Los Angeles Lakers' arena, highlighting the potential impact of regulatory actions on its business.
The case is filed in a Texas federal court, with the company hoping for a ruling that could set a crucial precedent for the crypto industry's regulatory framework.