Major Developments In The Crypto Industry: Crypto.com Files Petition 🌟
Crypto.com, a notable trading platform for cryptocurrencies, has initiated a petition with the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC). The platform’s main objective is to collaborate with others in the industry to secure the future of cryptocurrencies across America.
Crypto.com Takes Action Against SEC and CFTC 🚀
Crypto.com has taken a significant step by filing a petition against the SEC and CFTC. This action was publicly shared by the CEO of Crypto.com, Kris Marszalek, through a post on X. He emphasized the importance of this lawsuit in safeguarding the future of crypto in the United States.
In his statement, Marszalek expressed:
“Today, Crypto.com has filed a lawsuit against the SEC to protect the future of cryptocurrencies in the United States.”
The company noted its intent behind this lawsuit, stating:
“We are undertaking this legal action to defend the future of the cryptocurrency sector in the U.S., joining several of our peers who are also actively contesting against a federal agency that exceeds its lawful boundaries.”
After receiving a Wells notice, which is a formal warning about possible enforcement actions, Crypto.com decided to take a stand in the ongoing regulatory discourse surrounding digital currencies.
Unveiling the SEC’s Regulatory Practices 🔍
The petition aims to shed light on what Crypto.com describes as a continuous and inappropriate regulatory campaign by the SEC. The lawsuit specifically asserts that the SEC has improperly broadened its jurisdiction beyond the limits established by law.
Moreover, the lawsuit contends that the SEC has created an illegitimate rule categorizing nearly all cryptocurrency exchange activities as securities transactions without consideration for how they are offered. In a contrasting manner, transactions involving Bitcoin (BTC) and Ethereum (ETH) are treated differently.
Crypto.com’s Stance on Regulatory Matters ⚖️
Crypto.com has opted to utilize available regulatory instruments to seek clarity for various stakeholders in the cryptocurrency domain. The ongoing petition involves both the CFTC and the SEC, aiming to affirm that certain cryptocurrency derivative products fall solely under the CFTC’s regulatory authority.
The platform is advocating for a clear process that allows market participants to inquire whether their products qualify as a “swap,” a “security-based swap,” or a “mixed swap.” This structured approach intends to provide more certainty in the regulatory landscape.
Under the proposed joint guidelines, both the CFTC and the SEC will have a deadline of 120 days to provide a collaborated interpretation, which should undergo public commentary. If they deny this interpretation, they are obligated to present written explanations outlining their reasoning.
Collaboration and Consultation: A Vital Approach 🤝
Furthermore, these regulatory agencies must consult with the Federal Reserve Board of Governors when issuing rulings concerning derivatives, promoting coordinated efforts in their oversight roles.
Crypto.com’s ambition is to enhance the overall cryptocurrency realm by aligning with regulatory standards. Their communication highlights:
“We believe that our recognized commitment to regulatory compliance, coupled with favorable recent court decisions against the SEC, positions us advantageously to contest their unjust procedures. While this situation is unfortunate, we remain hopeful that the judiciary will provide necessary checks on the arbitrary actions of the SEC concerning cryptocurrencies, validating our position. Success in this endeavor will ensure our operational compliance, benefiting our clients and the entire sector in the United States.”
Current Status of Cronos (CRO) 📉
As Crypto.com focuses on its legal dispute with the SEC, the valuation of its native cryptocurrency, Cronos (CRO), appears to reflect a lack of enthusiasm from investors. Presently, the value of CRO is approximately $0.076, marking a decline of 3.6% over the last day. During this 24-hour period, the price had dipped as low as $0.074, indicating that the current rate may signal a potential recovery.
Alongside its price movements, the market capitalization of CRO has decreased to $2 billion, causing the cryptocurrency to drop to the 42nd position in market rankings. In mid-September, CRO was positioned 37th, illustrating continued struggles and a failure to regain momentum, as it has been surpassed by various other crypto initiatives.
The persistent downward trend over recent months highlights the challenges faced by CRO, underscoring a broader narrative of volatility and instability within the cryptocurrency space.
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