Crypto.com has initiated legal action against the Securities and Exchange Commission (SEC), claiming that the agency has overstepped its regulatory boundaries. The lawsuit, representing over 50 million American cryptocurrency holders, challenges what it sees as an unlawful expansion of the SEC's jurisdiction.

Kristin Smith, CEO of the Blockchain Association, expressed support for Crypto.com's actions. "Today, Crypto.com is stepping up on behalf of the more than 50 million American crypto holders to file suit against the SEC, arguing that the agency has unlawfully expanded its jurisdiction beyond statutory limits," Smith stated.

The move comes amid a backdrop of bipartisan support for the cryptocurrency industry in Washington. However, Smith noted concerns about the SEC's approach to regulation. "Despite overwhelming bipartisan support for the industry in Washington, the SEC continues to regulate through enforcement, driving the American crypto industry offshore," she said.

Smith also highlighted Crypto.com's determination to advocate not just for itself but for the broader U.S. crypto industry and its users. "Crypto.com’s leadership – and commitment to win for not only itself, but for the entire U.S. crypto industry, and its users – sends a clear message to the SEC: The crypto industry is here for good."