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.
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