A recent filing revealed that the Securities and Exchange Commission (SEC) has deemed network tokens, with the exception of bitcoin (BTC) and Ethereum’s ether (ETH), as securities. As a result, the SEC issued a notice to Crypto.com for allegedly operating as an unregistered broker-dealer and securities clearing agency under federal securities laws.
This development highlights the increasing regulatory scrutiny facing cryptocurrency exchanges and platforms. Crypto.com, which offers trading of various cryptocurrencies, is now facing potential consequences for its alleged violation of securities laws.
It is crucial for companies operating in the cryptocurrency space to ensure compliance with relevant regulations to avoid regulatory action. The SEC’s notice to Crypto.com serves as a reminder of the importance of adhering to securities laws in the rapidly evolving cryptocurrency industry.
