After Ripple now Crypto.com in conflict with SEC

The crypto-exchange Crypto.com is taking legal action against the SEC. The exchange watchdog would "random and capricious" act.

Crypto.com has filed a complaint against the U.S. stock market watchdog SEC. "While it is an unprecedented step for our company to file a complaint against a federal agency, its actions toward our industry leave us no other choice", according to a press release.

According to Crypto.com, "the SEC unilaterally violated its powers beyond the legal limits". The dispute is over general trading in cryptocurrencies, which the SEC says would fall under the securities laws.

The stock market watchdog would, according to Crypto.com "introduced an illegal rule that states that trading in almost all crypto assets is securities trading, regardless of how they are sold, while identical transactions with Bitcoin (BTC) and Ether (ETH) are not".

The SEC's application of this rule is labeled by Crypto.com as "arbitrary and capricious". Especially since "these crypto assets are virtually indistinguishable from BTC and ETH". Now Crypto.com is coming out with a lawsuit against the SEC. Previously, the crypto exchange received a "Wells notice", announcing possible investigations.

The SEC has had conflicts with parties before within the crypto market. On Oct. 2, for example, the exchange watchdog had appealed Judge Analisa Torres' ruling in the case against Ripple. The ruling, made in July of the same year, had come down in Ripple's favor. The court had ruled that selling XRP through trading platforms did not violate securities laws.