Crypto.com is optimistic about its chances in its legal fight with the U.S. Securities and Exchange Commission (SEC), thanks to recent court rulings that have gone against the regulator. The exchange’s Chief Legal Officer, Nick Lundgren, highlighted that these victories provide a “strong legal footing” for their own case.
Crypto.com’s Legal Stand Against the SEC
On October 8, Crypto.com co-founder and CEO Kris Marszalek announced that the company had filed a lawsuit against the SEC. This action came after receiving a Wells notice from the agency, which signals potential enforcement actions. Crypto.com argues that the SEC’s moves represent “unauthorized and unjust regulation,” and the company hopes that future U.S. administrations will take a more constructive approach to cryptocurrency.
Legal Rulings Bolster Confidence
The crypto industry has scored significant legal wins against the SEC, establishing important precedents that could benefit Crypto.com. One of the most notable victories came in August 2024 when Grayscale Investments successfully challenged the SEC. This ruling allowed Grayscale to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), paving the way for broader acceptance of Bitcoin ETFs, which began trading in January 2024.
Another crucial ruling came in July 2023, when a court decided that XRP is not classified as a security when sold on digital asset exchanges. This ruling led to the return of XRP to global exchanges after a series of delistings, further limiting the SEC’s ability to regulate digital assets as securities.
SEC Overreach and Crypto’s Legal Wins
Nick Lundgren emphasized that U.S. courts have provided “much-needed relief” from the SEC’s regulatory overreach. He expressed confidence that Crypto.com’s case will succeed, asserting that recent rulings confirm what many in the industry have long believed—that cryptocurrencies themselves are not securities.
“We trust the U.S. Judicial Branch will ultimately provide the regulatory certainty the SEC has failed to deliver,” Lundgren told on October 17.
