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The Digital Chamber, a digital asset advocacy organization, is supporting Crypto.com following CEO Kris Marszalek’s announcement regarding a lawsuit against the United States Securities and Exchange Commission (SEC) after receiving a Wells Notice.
Kris Marszalek’s Crypto.com Initiates Legal Action After SEC Wells Notice
In a recent statement, the Digital Chamber has expressed its “full support” for Crypto.com’s legal proceedings against the SEC.
The Digital Chamber stands united with @cryptocom in its quest for regulatory clarity. Clear regulations—not enforcement actions without rulemaking—are essential for the future of cryptocurrency in the U.S.
Read our complete statement herepic.twitter.com/oE6q5wGzZS
— The Digital Chamber (@DigitalChamber) October 8, 2024
“This lawsuit is a crucial step toward attaining the regulatory clarity that is necessary for the cryptocurrency industry to flourish in the United States,” remarked The Digital Chamber. “Crypto.com’s situation underscores the difficulties that emerge when the SEC neglects the formal rulemaking process and instead resorts to enforcement actions that foster uncertainty and impede innovation.”
Long criticized for its enforcement-focused approach to digital asset regulation, the SEC reportedly issued a Wells Notice to the platform led by Marszalek on August 22, indicating an impending enforcement action against the crypto company.
As stated in Crypto.com’s filing, the SEC has been investigating the digital asset firm since February 2023 for possible violations of U.S. securities laws.
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Marszalek declared his intention to sue the federal agency on October 8 via an X post, asserting that the SEC’s “unauthorized overreach and unlawful rulemaking concerning cryptocurrency must cease.”
Today, https://t.co/pFc4Pz9nFR filed suit against the SEC to safeguard the future of crypto in the U.S.: https://t.co/kXxyhF7zFe
— Kris | Crypto.com (@kris) October 8, 2024
“While we appreciate the recent bipartisan support for the industry, this message has not been acknowledged by the current SEC leadership that issued us a Wells notice,” Marszalek noted. “The SEC’s unauthorized overreach and unlawful rulemaking regarding crypto must come to an end.”
The Digital Chamber Takes Initiative
The lawsuit, which alleges that the federal agency regulates cryptocurrency through “aggressive litigation in a manner that is neither efficient nor fair,” represents the latest effort by a crypto entity to confront the SEC, following challenges from Binance and Coinbase, among others.
The Digital Chamber has consistently supported significant players in the blockchain domain. In November 2023, after the agency filed a lawsuit against the cryptocurrency exchange Kraken, the Chamber urged Congress to curtail SEC overreach and criticized the regulator for issuing a Wells Notice to Robinhood Crypto last May.
“We believe that clear and equitable regulations are vital for innovation, rather than regulatory overreach through enforcement,” the crypto advocacy group added. “We stand with Crypto.com as they pursue this critical issue in U.S. courts, confident that it will reinforce the significance of due process in the regulatory framework.”
The post The Digital Chamber Issues Statement After Crypto.com Files Lawsuit Against SEC: “Regulatory Overreach” appeared first on Cryptonews.
