The SEC has announced that it is investigating Crypto․com, a fairly large crypto exchange that is extremely active in the US. The regulator is preparing documents to sue the exchange because it “equates crypto transactions with transactions in unregistered securities that violate U.S. laws.”
However, Crypto․com happily reported that they too have filed a lawsuit against the SEC, ahead of the latter, as “the regulator has unilaterally expanded its jurisdiction beyond the statutory framework.”
So, our interpretation of the news of another SEC attack that was in the last post.
The SEC is going rogue - the commission is attacking crypto companies across the crypto spectrum. As we wrote recently, even a mining company is being sued, allegedly mining equipment (hardware) is a “security” whose circulation needs to be stopped immediately.
The monotony of accusations, which are consistently applied to everything that meets and crosses with the prefix “crypto”, is exactly what is alarming. There is little rationality here anymore, and it rather smells like some kind of crusade.
But the good news is that Crypto.com has responded rather sharply to the SEC, boldly attacking the regulator with a countersuit. The swiftness of the response suggests that Crypto.com has been preparing for the fight in advance, carefully fencing around the perimeter in legal terms. The important thing here is this - there is no longer any deference, respect or fear of the feds. The example of Ripple, which last year cut the SEC's throat by winning a legal battle against it, has inspired many.
In short, something is clearly going wrong in the American state. The change of the US president will be extremely important for the crypto industry, as it will show what will happen to the crypto business in the largest country in financial terms.