Crypto.com Sues the SEC
Last week, Crypto.com initiated a lawsuit against the SEC. CEO Kris Marszalek revealed the exchange has been under investigation since February 2023, receiving notice of possible enforcement action in August 2024.
The SEC claims that certain cryptocurrencies, such as SOL, ADA, BNB, FIL, and FLOW, are classified as securities. However, SOL is the only one with a significant impact on Crypto.com’s trading volumes.
Crypto.com Pushes Back Against Overreach
Crypto.com argues the SEC’s investigation oversteps its bounds. The exchange claims the regulator has created an “unlawful rule,” treating most trades as securities transactions, regardless of how they are executed.
The US market plays a critical role in Crypto.com’s business. Last month, 26% of the exchange’s web traffic came from the US. App downloads also support this, with most coming from the US, UK, and Canada.
Trading Patterns Reflect US Influence
Crypto.com’s trading patterns show the majority of users are active during US market hours. Trade volumes peak around 2 PM UTC (10 AM EST), highlighting the exchange’s reliance on US-based traders.
Strong Market Performance
This lawsuit comes at a pivotal moment for Crypto.com. The exchange has gained ground against competitors in both the US and global markets this year. Crypto.com now controls nearly 30% of BTC trading volume among major exchanges, surpassing Bybit and closing in on Binance. It ranked third in a recent exchange ranking, with the highest liquidity score among its peers.
