Crypto.com has made headlines with its acquisition of Watchdog Capital, a broker-dealer registered with the U.S. SEC. This strategic move will allow the exchange to broaden its offerings by providing equities and equity options to eligible U.S. traders.
In a press release, CEO Kris Marszalek expressed confidence in the future of the U.S. market. He said:
We are aggressively working towards integrating traditional financial tools with digital financial capabilities and are doing so while maintaining our focus on building responsibly with the necessary licenses and registrations to operate as the industry’s leader.
This development enhances the capabilities of the Crypto.com family, providing users access to stocks and options markets. Travis McGhee, Managing Director and Global Head of Capital Markets at Crypto.com highlighted the importance of adapting to the evolving market.
“Consumers and traders want to engage in the digital-first trading environment,” he said. The company plans to share more details on new products and services with eligible customers soon.
This acquisition is the continuation of a long journey of Crypto.com making significant progress, such as the launch of the very first CFTC-regulated crypto derivatives product UpDown Options.
In addition, they have also incorporated PayPal as a new payment method and launched global retail services in partnership with Standard Chartered. It is worth mentioning that Crypto.com has become the most robust exchange supporting the U.S. Dollar on a global scale.
Crypto.com legal action against the SEC
Nevertheless, the acquisition comes really amidst controversy. Crypto.com filed a lawsuit against the SEC last month after getting Wells notice from the regulator, asking for declaratory relief. Marszalek declared the filing on Oct. 8 in a statement denouncing the approach of the SEC.
He argued that the SEC unilaterally expanded its jurisdiction beyond statutory limits and thereby harmed over 50 million American crypto holders. The bold legal challenge marks a dramatic turn in the tense fight between crypto companies and regulatory agencies.
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