As the November elections approach, cryptocurrency enthusiasts eagerly anticipate the events ahead. However, the SEC is taking action, recently sending a Wells Notice to the Cryptocom exchange. This move mirrors similar actions against Binance and Coinbase in June of last year.
Lawsuit Against Cryptocurrency Exchange
A few years ago, receiving a Wells Notice would have caused significant panic in the cryptocurrency sector. Yet, with the SEC initiating over 100 cryptocurrency-related lawsuits in a short time, such notifications have become commonplace. This notice indicates the SEC’s intent to file a lawsuit against the respective exchange, with an official complaint expected soon.
Impact on the Cryptocurrency Market
The lawsuit illustrates the SEC’s unilateral expansion of jurisdiction beyond legal boundaries. It also reinforces the view that nearly all cryptocurrencies, except for BTC and ETH, are considered securities, increasing legal pressure on altcoins.
Following the announcement, the exchange’s token, CRO Coin, experienced a decline of over 5%.
