Crypto.com v. SEC Is a Bold, 'Bet the Company' Case

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Aaron Brogan started Brogan Law, a boutique law firm that advises businesses and individuals in cryptocurrency.

Last week, you probably saw that the cryptocurrency exchange Crypto.com sued the SEC. Maybe you moved on with your day, orto see that the company is “seek declaratory and injunctive relief to prevent the Securities and Exchange Commission from unlawfully expanding its jurisdiction to cover secondary-market sales of certain network tokens.”by the SEC all the time, and none of these have moved the needle. Crypto.

First of all, the firm hired Noel Francisco, a former U.S. Solicitor General, to represent it. Former Solicitor Generals like Francisco and Uniswap’s counsel Don Verrilli represented the United States government in the Supreme Court. They are among the very best and most experienced appellate litigators in the country, and, one can safely guess, among the most expensive. You don’t hire Noel Francisco to posture. You hire Noel Francisco to go to war.from Florida to Tyler, Texas.

These actions can be very difficult to prosecute because of the related doctrines of “justiciability” and “ripeness” through which courts abstain from “.” Fundamentally, a declaratory judgment asks a court to determine rights in a forward-looking way, before a controversy arises, and courts prefer to wait for the controversy. Consensys justBut if it doesn’t, and the Wells notice Crypto.com received forms a sufficient basis for a declaratory action to proceed, Crypto.

 

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