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

According to CoinDesk: Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC), along with its Chair Gary Gensler and four commissioners, following the receipt of a Wells Notice from the regulator. The lawsuit seeks to block the SEC from what it claims is an unlawful expansion of its jurisdiction over secondary-market sales of certain network tokens traded on the exchange.The suit, filed by Foris DAX Inc., the entity operating as Crypto.com, seeks declaratory and injunctive relief to prevent the SEC from exerting authority over these transactions. Wells notices serve as preliminary notifications, warning of potential charges the regulator may bring, typically leading to enforcement actions.In a related move, Crypto.com has also submitted a petition to both the Commodity Futures Trading Commission (CFTC) and the SEC, requesting a joint interpretation to confirm that certain cryptocurrency derivative products fall under the CFTC’s regulatory oversight, not the SEC's.