“The regulator has exceeded its authority,” – this is how Crypto.com commented on the filing of the lawsuit against the SEC after receiving a Wells Notice. In this notice, the U.S. Securities and Exchange Commission expressed its intention to sue the crypto exchange for operating as an unregistered broker-dealer and clearing agency.

Moreover, the lawsuit claims that the SEC “established an unlawful rule that almost all transactions with crypto assets are considered securities transactions.” As the company stated: “We will not allow the SEC to unlawfully expand its jurisdiction to secondary sales of tokens sold on our platform.” However, Crypto.com representatives declined further comments.

Crypto.com CEO Kris Marszalek wrote on social media X: “The need to stop the SEC’s wrongful actions is clear.” The CRO token, associated with the Cronos blockchain, fell by 7.6% amidst these events.