SEC Closes Case Against Crypto.com with No Enforcement Action

In response to the Wells notice, Crypto.com filed a lawsuit against the SEC in October 2024, accusing the agency of overstepping its authority and adopting a misguided approach to cryptocurrency regulation. The exchange later dropped its lawsuit in December 2024.

Kris Marszalek, CEO of Crypto.com, expressed relief and optimism following the SEC's decision. He highlighted the challenges faced during the investigation, stating, "They used every tool available to attempt to stifle us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to put an end to the industry." Marszalek emphasized the company's resilience, noting, "The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!". He posted on X:

Nick Lundgren, Chief Legal Officer of Crypto.com, also commented on the closure of the investigation, expressing satisfaction with the current SEC leadership's decision.

He criticized the previous administration's approach, stating, "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." Lundgren added, "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."

The SEC's decision to close the investigation into Crypto.com aligns with a broader trend of the agency reevaluating its stance on cryptocurrency regulation under new leadership. Since January 2025, the SEC has dropped several enforcement actions against major crypto firms, including Coinbase, Kraken, Consensys, and Uniswap Labs. This shift indicates a move towards establishing clearer regulatory frameworks rather than pursuing legal actions.

Crypto.com has distinguished itself as the only full-service global cryptocurrency exchange to avoid being sued by the SEC or to have settled any allegations against it. The company maintains more than 100 regulatory approvals worldwide, including registration as a money services business with the Financial Crimes Enforcement Network (FinCEN), over 40 state money transmitter licenses, and registration as a designated contract market (DCM) and derivatives clearing organization (DCO) with the Commodity Futures Trading Commission (CFTC). Additionally, Crypto.com is a FINRA-registered broker-dealer and a licensed qualified custodian for digital assets. ​

The closure of the SEC's investigation has had a positive impact on Crypto.com's native token, Cronos (CRO). Following the announcement, CRO experienced a 12% surge, outperforming major cryptocurrencies like Bitcoin and Ethereum during the same period.

This development underscores the evolving regulatory landscape for cryptocurrencies in the United States. The SEC's recent actions suggest a shift towards a more collaborative approach, focusing on creating clear rules and engaging with industry stakeholders. As the cryptocurrency sector continues to mature, such regulatory clarity is expected to foster innovation while ensuring consumer protection.