Major cryptocurrency exchange and service provider Crypto.com has launched a legal battle against the United States Securities and Exchange Commission (SEC) to safeguard the future of the crypto industry in the country.

Kris Marszalek, co-founder and CEO of Crypto.com, announced on X (formerly Twitter) on Oct. 8 that the company has officially filed a lawsuit against the SEC.

“This unprecedented action by our company against a federal agency is a warranted response to the SEC’s regulation by enforcement regime, which has hurt more than 50 million American crypto holders,” Marszalek stated.

Crypto.com’s official announcement emphasizes the company’s intent to "protect the future of the crypto industry in the US," aligning with other industry peers who have also taken legal action against what they describe as a "misguided federal agency acting beyond its authorization under the law."

Marszalek further assured that the company would leverage “all regulatory tools available” to bring clarity to the crypto space through proper rulemaking. Crypto.com has also petitioned both the US Commodity Futures Trading Commission (CFTC) and the SEC to confirm the categorization of crypto derivative products.

The lawsuit follows Crypto.com's receipt of a Wells notice from the SEC, signaling impending enforcement action. The company argues that this action is part of a broader SEC campaign of "unauthorized and unjust regulation by enforcement," despite signals from bipartisan sources that future administrations may adopt a more constructive approach.

Crypto.com acknowledged that while “improper SEC enforcement actions” have become part of running a licensed crypto business in the US, the agency’s overreach has left the company with no alternative but to file the suit. The lawsuit claims that the SEC has “unilaterally expanded its jurisdiction beyond statutory limits.”

The exchange also criticized the SEC for establishing an unlawful rule that deems nearly all crypto transactions as securities trades, regardless of how they are sold.

Despite the legal challenges, Crypto.com affirmed that it is "business as usual" and continues its "pursuit of crypto in every wallet."

Additionally, Crypto.com filed a petition with the CFTC and SEC to clarify whether specific cryptocurrency derivative products are "solely regulated by the CFTC." The petition references joint rulemaking under the Dodd-Frank Act, which allows market participants to request clarification from the CFTC and SEC on whether a product is classified as a “swap,” “security-based swap,” or “mixed swap.”

Under these rules, the agencies have 120 days to either issue a joint interpretation or provide reasons for any denial.