Crypto.com, a leading cryptocurrency exchange, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in a bold move aimed at defending the future of the crypto industry in America. CEO Kris Marszalek announced the lawsuit on Oct. 8, calling it a necessary response to the SEC’s aggressive “regulation by enforcement” approach, which he claims has harmed over 50 million American crypto holders.

Marszalek emphasized that this legal battle is about protecting the crypto industry from what Crypto.com views as the SEC’s unauthorized overreach. He promised that the company would utilize all available regulatory tools to ensure that the crypto space is properly regulated through established rulemaking, rather than the SEC’s current actions.

Crypto.com’s lawsuit follows the exchange receiving a Wells notice from the SEC, signaling potential enforcement action. The company argues that the SEC has expanded its jurisdiction beyond legal limits, treating nearly all crypto transactions as securities, regardless of how they are conducted. Crypto.com is also petitioning the Commodity Futures Trading Commission (CFTC) to confirm that some crypto derivatives should be regulated solely by the CFTC, not the SEC.

Despite the legal challenges, Crypto.com maintains that its operations will continue as usual, reiterating its mission of bringing “crypto in every wallet” while challenging the SEC’s regulatory tactics. The outcome of this legal battle could set a precedent for the future of crypto regulation in the United States.