Kristin Smith, CEO of the Blockchain Association, has voiced strong support for Crypto.com’s lawsuit against the U.S. Securities and Exchange Commission (SEC), criticizing the regulatory body’s overreach and its potential to hinder the crypto industry’s growth in the U.S.
In a statement shared on X (formerly Twitter), Smith emphasized the importance of the lawsuit in pushing for much-needed regulatory clarity. She stated, “Crypto.com’s leadership sends a clear message to the SEC: The crypto industry is here for good.”
Smith underscored that this legal action is not just about defending Crypto.com, but also about protecting the broader U.S. crypto community and its users against what she views as SEC overreach.
Crypto.com Takes Legal Action Against the SEC
The lawsuit was initiated after Kris Marszalek, CEO and co-founder of Crypto.com, announced the company’s decision to sue the SEC. The action came in response to a Wells notice issued by the SEC on August 22, accusing the platform of violating U.S. securities laws.
Marszalek labeled the SEC’s approach as part of its ongoing “unjust regulation by enforcement” strategy. He highlighted the challenges facing legitimate crypto businesses in the current regulatory environment, despite signals from bipartisan leaders that future administrations might adopt a more balanced stance on crypto regulation.
Marszalek expressed the frustrations of many industry players, stating that “Improper SEC enforcement actions have become a significant challenge for legitimate crypto businesses operating in the U.S.“
Widespread Criticism of SEC’s Approach
The SEC has come under fire from various quarters of the crypto community for its regulation-by-enforcement tactics. Major players such as Binance and Coinbase have also found themselves in the crosshairs of the Commission in recent months.
Many in the blockchain industry argue that the SEC’s aggressive actions are pushing innovation offshore, which could stifle the U.S. as a global leader in digital assets.
However, political figures have started to recognize the importance of a balanced approach. At a recent campaign event in Pittsburgh, Democratic nominee Kamala Harris acknowledged the need for both innovation in digital assets and strong consumer protections. She stated, “We will create a safe business environment with consistent and transparent rules of the road,” signaling the potential for a more constructive regulatory environment in the future.
As of now, the SEC has yet to respond to Crypto.com’s legal action.
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