SEC Dismisses Case Against Crypto.com, No Enforcement Actions Taken
The U.S. Securities and Exchange Commission (SEC) has dismissed the case against Crypto.com, which was previously accused of overstepping its regulatory authority.
The decision marks the end of the investigation without any enforcement actions being taken against the cryptocurrency exchange.
In a post on X, Crypto.com CEO Kris Marszalek expressed satisfaction with the outcome, stating that the probe had been closed “with no action being taken against Crypto.com.” He added, “The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!”
Background of the SEC Investigation
Crypto.com had received a Wells Notice from the SEC in October 2024, signaling the agency’s intention to potentially take enforcement action related to the exchange’s token sales. In response, Crypto.com filed a lawsuit against the SEC, challenging the regulator’s classification of most cryptocurrency transactions as securities and arguing that the SEC was overreaching its authority. However, the exchange ultimately dropped the lawsuit in December 2024.
Crypto.com’s Leadership Reflects on the Outcome
Nick Lundgren, Chief Legal Officer of Crypto.com, expressed his satisfaction with the current leadership of the SEC under President Trump’s administration. Lundgren remarked, “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 disfavoured.”
He further emphasized that it was “unfortunate” that Crypto.com had to endure a lengthy investigation and initiate legal action to defend its position. Lundgren expressed optimism about working with the SEC moving forward, stating, “Compliance and integrity are core to Crypto.com’s business, and we are excited to work with soon-to-be-confirmed Chair Atkins and the rest of the Commission on our long-awaited desire for legislation and rulemaking.”
SEC’s Recent Shift in Approach to Crypto Enforcement
The dismissal of the case against Crypto.com is part of a broader trend of the SEC reconsidering its approach to cryptocurrency enforcement. Under the leadership of Gary Gensler, the SEC took several enforcement actions against crypto firms, but many of these actions have since been withdrawn.
In a statement following the dismissal of civil enforcement actions against Coinbase, Acting SEC Chairman Mark T. Uyeda explained that the agency is now working to “rectify its approach and develop crypto policy in a more transparent manner.” The SEC has also dropped investigations into other major crypto companies, including Gemini, Robinhood, Coinbase, OpenSea, and UniSwap.
This shift in approach reflects an evolving regulatory stance toward the cryptocurrency industry, with increased efforts to ensure transparency and establish clear guidelines for the space.
Editorial Team
Reporter at Coindoo
