Crypto.com Sues the SEC Over Cryptocurrency Classification
Oct 16, 2024 am 03:28 AMCrypto.com has initiated a lawsuit against the U.S. Securities and Exchange Commission (SEC) for classifying cryptocurrency as a security.
Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) over the regulator's classification of cryptocurrency as a security. The legal battle highlights the ongoing debate over how digital assets are regulated in the U.S.
Under U.S. law, a cryptocurrency is considered a security if it qualifies as an investment contract, wherein investors expect profits based on the efforts of others. The SEC has been working to apply these regulations to cryptocurrencies, aiming to ensure that they meet the existing standards.
Crypto.com Takes Legal Action Against the SEC
On October 10, the CEO of Crypto.com Kris Marszalek announced a lawsuit against the SEC. This marks a significant moment in the ongoing clash between cryptocurrency exchanges and U.S. regulators. The SEC began investigating Crypto.com in February 2023, eventually issuing a notice of enforcement action in August 2024.
The firm argued that the SEC has overstepped its authority by attempting to categorize nearly all trades on its platform as securities transactions, irrespective of the method of its sale.
SEC’s Classification of Cryptocurrencies
The SEC has taken similar actions against other exchanges, including Coinbase and Kraken, asserting that certain cryptocurrencies—like SOL, ADA, BNB, FIL, and FLOW—should be considered as securities. However, Crypto.com argued that applying the securities laws to digital assets is a misinterpretation of those regulations.
If the court were to approve the SEC’s classification, then the consequences could create a massive ripple across the cryptocurrency market. This would further increase compliance requirements for exchanges and potentially limit user access to certain digital assets.
Impact on the Cryptocurrency Market
This legal action comes at a pivotal time for Crypto.com, which has experienced rapid growth, notably increasing its BTC trading volume to nearly 30%, surpassing competitors like Bybit. Amidst regulatory uncertainty, market observers await the verdict of the lawsuit, as the court's decision will strongly influence the market structure of the firm and its future developments.
Notably, the U.S. remains to be a key market for Crypto.com, with over 26% of its web traffic in the last month coming from native users, which can be used as a proxy for users’ location. Apart from the U.S., major downloads of the exchange were identified in the UK and Canada.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
The above is the detailed content of Crypto.com Sues the SEC Over Cryptocurrency Classification. For more information, please follow other related articles on the PHP Chinese website!

Hot AI Tools

Undress AI Tool
Undress images for free

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Hot Topics

The entry of top market maker Castle Securities into Bitcoin market maker is a symbol of the maturity of the Bitcoin market and a key step for traditional financial forces to compete for future asset pricing power. At the same time, for retail investors, it may mean the gradual weakening of their voice. On February 25, according to Bloomberg, Citadel Securities is seeking to become a liquidity provider for cryptocurrencies. The company aims to join the list of market makers on various exchanges, including exchanges operated by CoinbaseGlobal, BinanceHoldings and Crypto.com, people familiar with the matter said. Once approved by the exchange, the company initially planned to set up a market maker team outside the United States. This move is not only a sign

MicroStrategy intends to use the net proceeds to acquire additional Bitcoin and for general corporate purposes. The offering will be available to institutional investors and certain non-US buyers.

OKX, Binance and gate.io are the top three cryptocurrency exchanges in trading volume. 1. OKX ranks first with its technical strength and user base. 2. Binance maintains high trading volume with global layout and innovation. 3. gate.io attracts users with years of experience and low fees. The transaction volume, fees, security, user experience, currency selection, and compliance are required to choose a transaction.

With the rise of the U-coin market, trading applications that meet trading needs emerged. In 2025, the top ten U-coin trading applications including Binance, Coinbase, Kraken, Crypto.com stand out with their extensive trading pairs, high liquidity, advanced security measures and user-friendly interface. These applications provide a variety of services, including spot trading, futures trading, pledge and loans, to meet the needs of different user groups. This article will dig into the features, advantages and disadvantages of these applications to help users choose the platform that best suits their trading needs.

For newbies who are first exposed to cryptocurrency trading, choosing a safe and reliable trading platform is crucial. This article recommends the top ten best currency speculation apps in 2025, including Binance, Huobi, OKX, Coinbase, Crypto.com, Gemini, Kraken, FTX, Bitstamp and KuCoin. These trading platforms provide a variety of trading pairs, low transaction fees, powerful security measures and user-friendly interfaces, suitable for novice currency speculators with different needs.

Since Ripple unveiled the Ripple USD (RLUSD), FUD (Fear, Doubt, Uncertainty) spreaders have been disseminating misinformation about its potential

Ranking of the top ten exchanges in the global currency circle. With the booming development of the cryptocurrency market, more and more exchanges have emerged. The following are the top ten exchanges in the global currency circle as of [date]: 1. Binance (Binance) 2.Coinbase 3.FTX4.KuCoin5.Kraken6.Gemini7.Crypto.com8.Bitfinex9.Huobi10.Bybit ranking basis: This ranking is based on The following factors: Trading volume: Exchange daily processing of transactions Number of users: Number of registered and active users Supported by cryptocurrencies: Exchange listed cryptocurrencies of security and regulation: Exchange security measures and regulatory compliance Liquidity: Exchanges provide markets with depth and liquidity

With the continuous development of the cryptocurrency market, mobile trading software has become an important tool for investors to trade and manage assets. This article will summarize the top ten mobile cryptocurrency trading software for you to help you better choose the platform that suits you.