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- The SEC has officially closed its probe into Crypto.com without taking any action, marking a shift in regulatory approach.
- Kris Marszalek criticized past regulatory efforts, calling them a calculated attempt to stifle the crypto industry.
- Acting SEC Chair Mark Uyeda has taken a more conciliatory stance, forming a Crypto Task Force to reassess regulations.
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Crypto.com without taking any action against the exchange. The decision marks a turning point for the embattled crypto sector, which has faced intense regulatory scrutiny under the previous SEC leadership.
Crypto.com CEO Kris Marszalek didn’t hold back in his response, calling out what he described as an orchestrated effort to stifle the crypto industry. “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 stated in a March 27 post on X. “The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!”
SEC Drops Crypto.com Investigation Following Leadership Shift
The closure of the investigation comes seven months after the SEC issued a Wells notice to Crypto.com in August, signaling its intent to pursue legal action against the exchange. In response, Crypto.com filed a lawsuit against the regulator in October, accusing the agency under former SEC Chair Gary Gensler of exceeding its authority and implementing a flawed approach to digital currency regulation.
Nick Lundgren, Crypto.com’s chief legal officer, applauded the decision to drop the case, highlighting the SEC’s previous leadership’s aggressive stance against digital assets. “We are pleased that the current SEC leadership has decided to close its investigation into Crypto.com,” Lundgren said.
Furthermore, the move signals a broader shift in regulatory dynamics following Gensler’s resignation in January. Under the interim leadership of acting SEC Chair Mark Uyeda, the agency has taken a more conciliatory approach. It has formed a dedicated digital currency task force, led by SEC Commissioner Hester Peirce, to reassess its regulatory stance.
SEC Reverses Crypto Policy, Drops Lawsuits
Crypto.com is not the only firm to benefit from the SEC’s evolving position. Over the past five weeks, the agency has either closed investigations or dismissed lawsuits involving major crypto firms, including Coinbase, Consensys, Robinhood, Gemini, Uniswap, OpenSea, and Immutable.
Moreover, on March 27, the SEC also dismissed its civil enforcement case against Cumberland DRW, a major digital currency trading firm, “with prejudice,” ensuring the case cannot be reopened. Additionally, the commission reversed a controversial policy that required financial firms holding crypto assets to record them as liabilities on their balance sheets. This rule had previously drawn criticism for stifling institutional participation in crypto.
With Paul Atkins, former SEC Commissioner and Trump’s nominee for SEC Chair, nearing confirmation, the industry anticipates further regulatory changes. Atkins is widely regarded as a pro-digital currency regulator. He favors a more innovation-friendly approach to oversight.
Meanwhile, Crypto.com continues to expand its influence. On March 24, the exchange announced a strategic partnership with Trump Media. They will launch a series of “Made in America”-themed exchange-traded funds (ETFs). The new ETFs will back a selection of digital currencies, potentially including Bitcoin, Ethereum, Solana, XRP, and Cronos. Crypto.com will provide infrastructure and custody services.
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