Crypto.com Sues SEC, Chair Gary Gensler After Receiving Wells Notice

Cryptocurrency exchange Crypto.com said it sued the U.S. Securities and Exchange Commission, along with its Chair Gary Gensler and its four commissioners after the regulator sent a Wells Notice to the company.

The court filing was made by Foris DAX Inc., a company incorporated under the laws of the state of Delaware and operates under the business name of Crypto.com.

Wells notices are preliminary warnings telling recipients of the charges the regulator is considering bringing against them. They usually lead to enforcement actions.

Crypto.com’s filing “seeks declaratory and injunctive relief to prevent the Securities and Exchange Commission (‘SEC’) from unlawfully expanding its jurisdiction to cover secondary-market sales of certain network tokens sold on Crypto.com’s platform,” the suit said.

Separately, Crypto.com has filed a petition “with the CFTC and SEC to confirm via joint interpretation that certain cryptocurrency derivative products are solely regulated by the CFTC.”

Cronos (CRO), the native token of the Cronos blockchain developed in partnership with Crypto.com, fell as much as 4.7% after CEO Kris Marszalek’s posting on X.

UPDATE (Oct. 8, 14:14 UTC): Adds X posting, CRO token in last paragraph; changes lead photo.

Edited by Sheldon Reback.

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