Crypto.com, cryptocurrency trading platform, has announced that it has filed a petition with the CFTC and the SEC in the USA. The idea is to join its industry colleagues to protect the future of cryptocurrencies in the United States.
Crypto.com and the petition to the SEC and the CFTC of the USA to protect the future of cryptocurrencies
Crypto.com, the famous cryptocurrency trading platform, has stepped in to join its industry colleagues, filing a petition against the SEC and CFTC of the USA. Here is the announcement on X from the CEO of Crypto.com, Kris Marszalek:
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
“Today http://Crypto.com has filed a lawsuit against the SEC to protect the future of cryptocurrencies in the United States”
The crypto-exchange, on the other hand, commented on its action as follows:
“Today Crypto.com filed a lawsuit against the United States Securities and Exchange Commission (SEC). We are doing this to protect the future of the cryptocurrency industry in the United States, joining a number of our colleagues who are actively defending themselves and taking action against a misleading federal agency acting beyond its legal authorizations.”
In practice, after receiving a Wells notice, Crypto.com decided to actively defend itself on crypto regulation.
His petition aims to illustrate how the SEC is continuing with an unauthorized and unfair regulatory campaign.
Specifically, the lawsuit by Crypto.com argues that the SEC has unilaterally expanded its jurisdiction beyond legal limits. Not only that, separately, the SEC has established an illegal rule whereby exchanges of almost all cryptos are securities transactions, regardless of how they are sold, while identical transactions in Bitcoin (BTC) and Ethereum (ETH) are not.
Crypto.com and its petition: “the actions of the SEC towards the sector have left us no other choice”
Beyond what has already been stated, Crypto.com has decided to use the regulatory tools available to help provide certainty to the sector.
In fact, his cause continues with a petition to the CFTC and the SEC. Here, the goal is to confirm, through a joint interpretation, that some cryptocurrency derivative products are regulated exclusively by the CFTC.
In practice, Crypto.com wants to emphasize the process by which any market participant can ask the CFTC and the SEC if a product is a “swap,” a “security-based swap,” or a “mixed swap.”
With the joint rules, both the CFTC and the SEC have 120 days to issue a jointly approved interpretation (also requiring public comments) or to deny an interpretation. Should they decide to deny it, they must still publicly provide, in writing, the reasons why they do not issue it.
Not only that, to issue their verdict on derivatives, the agencies must consult with the Federal Reserve Board of Governors (the Fed) and can also undertake joint regulatory activity in consultation with the Fed.
The mission of Crypto.com is to succeed in lifting the entire crypto sector through regulatory compliance. Here are its words:
“We are confident that our internationally recognized commitment to regulatory compliance and the recent court rulings against the SEC’s claims towards participants in the cryptocurrency sector put us in a winning position to challenge their unfair actions. Although unfortunate, we trust that the judicial branch of the United States will help provide the much-needed oversight on the arbitrary actions of the current SEC leadership against cryptocurrencies and validate our claims. Our success in this matter will reaffirm our operational compliance for the benefit of our clients and the entire category in the United States.”
The price of Cronos (CRO)
While the platform is engaged in its case against the US SEC, the price of its crypto Cronos (CRO) does not seem to reflect great enthusiasm from investors.
At the time of writing, CRO is worth $0.076, in a dump of 3.6% in the last 24 hours. During these 24 hours, however, the price of CRO had dropped to as low as $0.074, and therefore the current price might also prove to be a recovery.
In addition to its price, the market cap of CRO has also dropped to 2 billion dollars, causing the crypto to slip to the 42nd position. In mid-September, for example, CRO was in the 37th position.
This means that the general trend of CRO, after months of suffering, has not yet recovered, being overtaken by other crypto projects.