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The United States Securities and Exchange Commission (SEC) has officially ended its investigation into Crypto.com without taking any action, marking a significant win for the crypto industry. This decision comes seven months after the SEC issued a Wells notice to Crypto.com in August 2024, signaling its intention to pursue legal action.
A Hard-Fought Battle
Crypto.com’s CEO, Kris Marszalek, took to X (formerly Twitter) on March 27 to confirm the news, stating that the SEC had employed various tactics to stifle the company’s operations. These included restricting access to banking, auditors, and investors. Marszalek claimed that it was a “calculated attempt” to suppress the crypto industry.
Nick Lundgren, Crypto.com’s chief legal officer, also issued a statement, accusing the previous SEC leadership of abusing its power. Crypto.com had fought back against the SEC’s actions by filing a lawsuit in October, arguing that the agency had overstepped its authority and taken an unfair regulatory approach under former SEC Chair Gary Gensler.
SEC’s Changing Stance on Crypto
The closure of the Crypto.com investigation is not an isolated event. Over the past five weeks, the SEC has rolled back multiple enforcement actions against major crypto firms, including Coinbase, Consensys, Robinhood, Gemini, Uniswap, and OpenSea. Additionally, on March 27, the SEC dismissed its case against Cumberland DRW with prejudice, signaling a shift in regulatory tone.
This change in approach follows the resignation of Gary Gensler and the appointment of Mark Uyeda as acting chair on January 20. Under Uyeda’s leadership, the SEC has formed a Crypto Task Force led by Commissioner Hester Peirce to reassess its regulatory framework. The commission has also repealed a controversial rule that required financial firms holding crypto assets to record them as liabilities on their balance sheets.
Political Influence on Crypto Regulation
The SEC’s softened stance aligns with broader political changes. Paul Atkins, a nominee under the Trump administration, is expected to take over as the new SEC chair. His appointment could further reshape how crypto regulations are enforced in the U.S.
Meanwhile, Crypto.com has continued to expand its market presence. On March 24, the firm partnered with Trump Media to launch a series of “Made in America”-themed exchange-traded funds (ETFs) later this year.
Conclusion
The SEC’s decision to drop its investigation into Crypto.com represents a major victory for the exchange and the broader crypto industry. With regulatory winds shifting, crypto firms may see a more favorable environment in the coming months.