Description

Announced lawsuit challenging SEC power to issue cryptocurrency asset classification

On 8 October 2024, Foris DAX Inc (Crypto.com) filed a lawsuit alleging that the Securities and Exchange Commission (SEC) does not have the jurisdiction to regulate the cryptocurrency sector (Case No. 6:24-cv-00373). The lawsuit follows the SEC's issuance of a Wells Notice, with possible enforcement actions against the company, and argues that the SEC has improperly classified most crypto transactions as securities transactions while exempting Bitcoin and Ethereum. The plaintiff claims this regulatory approach lacks consistency and fails to follow required procedural steps under the Administrative Procedure Act, thereby undermining the operation of legitimate crypto businesses. The plaintiff argued that its secondary-market transactions of targeted network tokens are not securities transactions and is requesting permanent injunctive relief to bar the SEC from enforcing regulations that classify them as such.

Original source

Scope

Policy Area
Authorisation, registration and licensing
Policy Instrument
Business registration requirement
Regulated Economic Activity
digital payment provider (incl. cryptocurrencies)
Implementation Level
national
Government Branch
judiciary
Government Body
court

Complete timeline of this policy change

Hide details
2024-10-08
under deliberation

On 8 October 2024, Foris DAX Inc (Crypto.com) filed a lawsuit alleging that the Securities and Exch…

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