Crypto.com Files 2025 Lawsuit Against SEC Over Crypto Regulation Controversy

Important Highlights

• Crypto.com has initiated legal action against the SEC, accusing the regulator of exceeding its authority in crypto oversight.
• The lawsuit was filed shortly after the SEC issued a Wells Notice to Crypto.com, signaling potential enforcement proceedings.
• Crypto.com argues that SEC's inconsistent application of securities laws unfairly targets most cryptocurrencies except Bitcoin and Ethereum.
• Similarly, blockchain company Consensys preemptively sued the SEC earlier this year following a Wells Notice.

On Tuesday, Crypto.com officially filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), asserting that the regulator’s recent measures overstep legal boundaries and threaten the growth of the cryptocurrency sector in the United States.

The legal action follows an August Wells Notice from the SEC, which warned Crypto.com of possible formal enforcement actions. Crypto.com contends that the SEC has unlawfully broadened its jurisdiction by classifying a majority of crypto transactions as securities, a move that lacks consistent application across the industry.

Crypto.com Challenges SEC's Regulatory Inconsistency

The lawsuit highlights the SEC’s selective treatment of digital assets, exempting Bitcoin (BTC) and Ethereum (ETH) while labeling similar cryptocurrencies as securities. Crypto.com also points out the SEC’s failure to follow required procedural steps, including the notice-and-comment rulemaking outlined in the Administrative Procedure Act.

Through this lawsuit, Crypto.com seeks to stop what it describes as the SEC’s unlawful crackdown on the crypto industry. Additionally, the company has petitioned both the Commodity Futures Trading Commission (CFTC) and the SEC to develop clearer, more balanced regulations for cryptocurrency derivatives within the U.S. market.

Notably, blockchain firm Consensys also took legal action earlier this year by filing a preemptive lawsuit against the SEC after receiving a Wells Notice, underscoring growing industry pushback against regulatory uncertainty.

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