Crypto.com, a cryptocurrency exchange and services provider, has cited recent court decisions against the U.S. Securities and Exchange Commission (SEC) as a potential boost that could help its legal battle with the regulator.

On October 8, Crypto.com co-founder and CEO Kris Marszalek announced that the exchange had filed a lawsuit against the SEC in response to the Wells notice the agency sent.

The company claims the SEC’s action is an example of “unauthorized and unfair regulation”; However, it is thought that the next US presidential administration may take a “more constructive and effective approach” to cryptocurrencies.

The cryptocurrency industry has achieved significant legal victories against the SEC in recent years, setting important precedents for companies like Crypto.com.

One of these victories was achieved by crypto asset manager Grayscale Investments, which won a lawsuit against the SEC in August 2024. This legal win allowed Grayscale to convert its over-the-counter Grayscale Bitcoin Trust (GBTC) fund into a spot Bitcoin exchange-traded fund (ETF), which began trading in January.

Another important decision was made in July 2023; The court stated that XRP was not a security when sold on digital asset exchanges, paving the way for XRP’s return to global exchanges after multiple delistings.

“The U.S. courts have given the crypto industry much needed relief from SEC overregulation and confirmed what we all know — crypto itself is not a security,” Nick Lundgren, chief legal officer of Crypto.com, told Cointelegraph on October 17.

Lundgren added:

“These rulings against the SEC provide a strong legal basis for success in our case. We are hopeful that the U.S. Judicial Circuit will finally eliminate the regulatory uncertainty that the SEC has failed to provide.” A Wells notice is a communication from a company informing it that the regulator has concluded that it should be charged with violating securities laws.

Just because Crypto.com received the Wells notice does not mean the company must cease operations in the United States.

“The Wells notice is not a definitive order preventing a defendant from continuing its business,” Michael Gold, partner in the Securities, Regulatory and Transactions Group, told Cointelegraph.

Gold stated that the recipient has the opportunity to respond to the Wells notice with a Wells Presentation that includes its arguments that the targeted charges should not be brought. Gold added:

“Essentially, they’re arguing that what they’re doing is legal and they’re going to continue doing it. If they win in court, no harm done.” Singapore-based Crypto.com officially launched its exchange services in the US in March 2022, initially opening its platform only to select institutional investors.

However, in June 2023, Crypto.com suspended its enterprise platform in the US due to limited demand. This move comes just after the SEC filed a lawsuit against US-based exchange Coinbase for allegedly offering unregistered securities such as Cardano, Solana and others.

While it has shut down its enterprise offering, Crypto.com allegedly continues to offer its retail services; According to social media comments, some users noted on Reddit that the platform was “fully operational” for retail users in the US.

It remains unclear which Crypto.com products and services are currently available to retail or institutional customers in the United States.

The website states that Crypto.com is currently available in 49 US states and US territories. The company maintains local headquarters in Texas. The list of supported jurisdictions does not include New York because Crypto.com is working to obtain the necessary approvals there:

“We will continue to evaluate the steps needed to offer our services in New York (our goal) and will provide updates as the situation in this restricted state changes,” the website says.

Crypto.com surpassed Coinbase in transaction volume in August, reaching $3.2 billion in daily transaction volume. Giuseppe Giuliani, chief executive of Crypto.com, attributed the growth to stronger market conditions and the acquisition of new institutional customers.