Crypto trading platform Cryptocom has broadened its U.S. presence by acquiring SEC-registered broker-dealer Watchdog Capital LLC. This acquisition, following Cryptocom’s recent lawsuit against the U.S. Securities and Exchange Commission (SEC), positions the platform to offer U.S. customers access to stock and options trading, complementing its crypto-focused services.
Watchdog Capital, as a member of both FINRA and SIPC, provides Cryptocom with a regulatory framework to expand its offerings in the U.S. market. Acquisitions like these are common in the crypto sector as firms seek entry into new markets. For example, Robinhood’s acquisition of Bitstamp earlier this year enhanced its European reach.
Cryptocom’s CEO Kris Marszalek highlighted that this acquisition aligns with their goal to introduce stock trading by year’s end. The company recently launched CFTC-regulated UpDown Options and partnered with PayPal, reflecting its steady expansion.
This acquisition coincides with Cryptocom’s ongoing legal challenge against the SEC, where it contests the regulator’s classification of most digital assets as investment contracts. Cryptocom joins other Web3 firms, like Ripple Labs, in disputing SEC jurisdiction over crypto assets. Through these strategic moves, Cryptocom is setting a notable precedent in the crypto industry, potentially influencing regulatory dynamics for other market participants.
