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Feeling frustrated with the US Securities and Exchange Commission (SEC) actions, crypto companies have protested in the past, and this time another firm has filed a lawsuit against the regulator. 

Crypto.com, a crypto exchange, announced that they have filed a lawsuit against the US SEC aiming to “protect the future of the crypto industry.” 

The crypto exchange claimed they would be joining a series of peers who are “actively defending themselves and taking action against a misguided federal agency acting beyond its authorization under the law.” 

The lawsuit against SEC came after the regulator sent a Wells notice to the crypto exchange. According to the press release, it states: “Improper SEC enforcement actions are part of the process of operating a legitimate and licensed crypto business in the US.”

“While this is an unprecedented move for our company to file suit against a federal agency, actions by that agency towards our industry have left us no other choice.”

Through the lawsuit, Crypto.com claimed that SEC expanded its jurisdiction beyond statutory limits. Furthermore, on several occasions, the SEC’s “unlawful rule” identified almost all crypto assets as securities transactions no matter how they are sold.

The crypto exchange claimed the “unlawful rule” was not reviewed through a notice and comment period, which is required by the Administrative Procedure Act. 

“The agency’s application thereof is arbitrary and capricious, particularly when those crypto assets possess virtually indistinguishable characteristics from and are sold in an identical manner as BTC and ETH.”

Crypto.com’s lawsuit aims to stop the SEC's “illegal actions,” which are beyond their authority control.