The globally fourth largest cryptocurrency exchange Crypto.com has announced that the SEC has officially closed its investigation into the exchange with no enforcement action taken.
The development is a major win for ease-of-crypto regulations in the US, and a reflection of the Crypto.com leadership’s consistent trust in the Trump administration to end the war on crypto.
Background:
The SEC had issued a Wells notice to Crypto.com in August 2024, signaling its intention to take legal action against the firm.
In response, Crypto.com filed a suit against the SEC in October 2024, although the suit was dropped two months later.
Since the Trump Administration came to power, investigations and lawsuits against Coinbase, Consensys, Robinhood, Gemini, Uniswap, OpenSea and more recently, Immutable have been dropped by the SEC.
An End to SEC’s Weaponization, A Win for Crypto.com
Responding to closure of the investigation against Crypto.com with no action, Nick Lundgren, Chief Legal Officer of Crypto.com said:
“Under the previous administration, the SEC weaponized and attempted to expand its congressionally granted power in order to harm an industry that its former chair disfavored. It is unfortunate that we were forced to endure this years-long investigation and file our own suit against the SEC to protect the rule of law. “
He added that compliance and integrity are core to Crypto.com’s business, as reflected in the exchange obtaining over 100 regulatory approvals to operate in jurisdictions around the world.
Crypto.com further reiterated its commitment to and investing in the advancement of the exchange’s business in the US. A similar sentiment was expressed by the CEO Kris Marszalek in a recent AMA.
What This Means for CRO:
The SEC’s decision to drop the investigation without enforcement action sends a clear signal of regulatory validation, building confidence in the Crypto.com and Cronos ecosystem. Without the threat of legal uncertainty Crypto.com can invest in Cronos to pave the way for greater innovation and ecosystem expansion.
Further, it is clear that Crypto.com is doubling down on its US operations for Cronos – from Cronos-included ETFS with Truth.Fi to the Cronos Strategic Reserve and an emphasis on ”aggressive re-investment”.
This sentiment is not lost to the market as CRO has risen in value by almost 30% over the last week at the time of writing.
