The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into Crypto.com, which was previously accused of regulatory infractions under the leadership of former head Gary Gensler. This decision comes without any enforcement actions being taken against the cryptocurrency exchange.
Crypto.com’s CEO, Kris Marszalek, announced on platform X that the investigation has concluded “with no action being taken against Crypto.com.” He expressed optimism, stating, “The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!”
Background on the Investigation
In October 2024, Crypto.com received a Wells Notice from the SEC, signaling the possibility of enforcement action related to its token sales. In response to this, the exchange filed a lawsuit against the SEC, alleging that the agency was overreaching its authority by categorizing the majority of cryptocurrency transactions as securities. However, Crypto.com later withdrew this lawsuit in December 2024.
Positive Outlook on New SEC Leadership
Nick Lundgren, the Chief Legal Officer of Crypto.com, expressed his satisfaction with the current SEC leadership under the Trump administration. He stated, "Under the previous administration, the SEC weaponized and attempted to extend its congressionally mandated powers to harm an industry that its former chair disfavored."
He emphasized the unfortunate circumstances that led Crypto.com to endure a lengthy investigation and ultimately file a lawsuit against the SEC to uphold the rule of law. Lundgren remarked, “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.”
Recent Trends in SEC Enforcement Actions
The SEC pursued multiple enforcement actions against various crypto firms last year under Gary Gensler’s leadership. However, many of these actions have recently been rescinded.
Acting SEC Chairman Mark T. Uyeda commented on the withdrawal of civil enforcement actions against Coinbase, stating that the SEC aims to “rectify its approach and develop crypto policy in a more transparent manner.” The agency has also ended investigations concerning other prominent platforms, including Gemini, Robinhood, OpenSea, and Uniswap.
