Key Takeaways
- The investigation began last year when the SEC issued a Wells notice to Crypto.com in August
- SEC has also dropped actions against Kraken, ConsenSys and Cumberland DRW LLC
Crypto.com announced on Thursday that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into the exchange and will not pursue enforcement action.
The SEC has not issued a public statement regarding the closure of the investigation. However, Crypto.com Chief Legal Officer Nick Lundgren stated, “We are pleased that the current SEC leadership has made the decision to close its investigation into Crypto.com with no enforcement action or settlement.”
This development comes amid the SEC dropping enforcement actions against Kraken, ConsenSys and Cumberland DRW LLC, filing joint stipulations to drop the cases with prejudice
The investigation began in August 2024 when the SEC issued a Wells notice to Crypto.com, indicating that it was considering legal action against the company. In response, Crypto.com filed a lawsuit against the SEC in October 2024, alleging regulatory overreach which later withdrawn in December.
Following the announcement, Cronos (CRO), Crypto.com’s native token, saw a price increase of more than 10%, extending its weekly gains to over 40%. Meanwhile, the company has continued to expand its business partnerships. Earlier this week, Trump Media & Technology Group (TMTG) announced a non-binding agreement with Crypto.com to collaborate on launching exchange-traded funds (ETFs) under the Truth.Fi fintech brand.
Despite the SEC’s decision, Crypto.com has faced scrutiny from the crypto community. On Monday, blockchain investigator ZachXBT accused the exchange of planning to reissue 70 billion CRO tokens that were previously removed from circulation in 2021. The company has not publicly addressed these claims.
In recent months, the regulatory agency has probed into Gemini, Robinhood, OpenSea, Yuga Labs, and Immutable. Some cases, such as those involving Binance and Tron, have been put on hold, while others, including a case against crypto issuer Unicoin, remain unresolved.
On Wednesday, Paul Atkins, President Donald Trump’s nominee for SEC chair, appeared before lawmakers and stated that establishing a clear regulatory framework for digital assets would be a “top priority.” The latest string of dismissals is viewed as part of Trump making a pivot in U.S. crypto regulation, by dropping cases against crypto firms including following Coinbase, Robinhood, Uniswap Labs, and OpenSea.
