- Crypto.com’s compliance is good enough for the SEC and saves it from legal trouble.
- SEC closes investigation into Crypto.com with no action, citing good compliance.
- Crypto.com probe closed without enforcement, reassuring regulatory confidence.
The U.S. Securities and Exchange Commission (SEC) has officially closed down its investigation of Crypto.com without imposing action. The move comes following an August 2024 Wells notice with threatened enforcement, and after Crypto.com filed a suit in October 2024 against the commission for exceeding its powers.
SEC Closes Investigation into Crypto.com Without Enforcement Action
Crypto.com CEO Kris Marszalek made the SEC’s action known on X, announcing that the commission’s investigation had been closed without any action being taken against the firm. The SEC initially alleged the firm with non-compliance, but a diligent review resulted in the case’s dismissal, citing the company’s regulatory compliance. Marszalek received the closure of the investigation with gratitude, noting the challenges experienced during the investigation.
Crypto.com had already received a Wells notice in August 2024, prompting it to file suit against the SEC in October 2024. The company retracted the lawsuit in December 2024 as the negotiations went on.
Crypto.com’s Chief Legal Officer, Nick Lundgren, criticized former SEC leadership over the alleged misuse of regulatory power against the cryptocurrency industry. Lundgren welcomed the end of the investigation as welcome news, in light of the necessity for defined rules to support the growth of the industry.
Broader Regulatory Landscape and Crypto.com Compliance Initiative
Other regulatory decisions that entailed the dismissal of enforcement charges against ConsenSys, Coinbase, Gemini, and other companies are consistent with the SEC’s action. Due to its dedication to legal compliance, Crypto.com is the only international cryptocurrency exchange that has not yet seen any court cases or settlements. It has over 100 foreign regulatory approvals from FINRA, CFTC, and FinCEN, among other issuing regulators.
The “Made in America” exchange-traded funds (ETFs) such as Bitcoin, Ether, Solana, XRP, and Cronos were introduced by Crypto.com and Trump Media recently. The launch forms a part of the long-term strategy of Crypto.com for encouraging the adoption of cryptocurrencies and financial innovations. Since the probe has come to a close now, the goal of the platform is to create legal foundations for a digital economy that is safe and stable.
