Crypto.com escapes regulatory scrutiny unscathed as SEC drops probe; signals broader policy reversal under new leadership
Overview
The U.S. Securities and Exchange Commission (SEC) has formally closed its investigation into Crypto.com, marking a significant regulatory win for the global crypto exchange. The decision comes seven months after the SEC issued a Wells notice—an indication of intended enforcement action—in August 2024.
Crypto.com CEO Kris Marszalek confirmed the closure on March 27 via a post on X, highlighting the exchange’s ability to withstand intense regulatory pressure:
“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… The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!”
The announcement not only marks the end of a challenging chapter for Crypto.com but also reflects a notable shift in the SEC’s regulatory posture toward the crypto sector under new leadership.
The SEC’s investigation into https://t.co/pFc4Pz9nFR has been closed with no action being taken against https://t.co/pFc4Pz9nFR.
— Kris | Crypto.com (@kris) March 27, 2025
Background: SEC’s Wells Notice and Legal Clash
In August 2024, Crypto.com received a Wells notice from the SEC, signaling the agency’s intent to pursue legal action. Although the specific allegations were never publicly disclosed, the notice was widely believed to concern potential violations related to the offering of unregistered securities—an increasingly common line of enforcement under the previous SEC administration led by Gary Gensler.
In response, Crypto.com filed a countersuit against the SEC in October, accusing the regulator of overstepping its legal mandate and taking a “misguided and hostile” approach to crypto oversight.
The firm’s legal team emphasized that Crypto.com had made extensive efforts to comply with relevant financial and regulatory requirements and argued that non-custodial crypto platforms should not be subject to legacy securities laws.
SEC’s New Approach Under Acting Chair Mark Uyeda
The closure of the Crypto.com investigation is part of a broader trend of enforcement rollbacks since Mark Uyeda took over as acting SEC Chair on January 20, following Gary Gensler’s resignation.
Under Uyeda’s interim leadership, the SEC has taken a more conciliatory and pragmatic stance toward the digital asset industry:
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Crypto Task Force: Established under Commissioner Hester Peirce, the unit is tasked with developing more balanced and innovation-friendly regulatory strategies.
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Liability Accounting Rule Canceled: On January 23, the SEC withdrew a controversial rule that required financial institutions holding crypto to record the assets as liabilities—widely criticized for discouraging crypto custody services.
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Case Dismissals: In the past five weeks, the SEC has dropped investigations or lawsuits involving major crypto players including Coinbase, Consensys, Gemini, Robinhood, Uniswap, OpenSea, and Immutable.
Most recently, the SEC also dismissed its civil enforcement action against Cumberland DRW, a crypto trading firm, with prejudice—indicating a permanent termination of the case.
Legal and Political Implications
Crypto.com’s legal victory comes at a time of growing political momentum for crypto deregulation in the U.S.
On the same day the investigation was dropped, Crypto.com’s Chief Legal Officer Nick Lundgren issued a statement:
“We are pleased that the current SEC leadership has made the decision to close its investigation into Crypto.com. The previous administration abused its authority in a deliberate effort to damage the digital asset industry.”
Meanwhile, Paul Atkins, a former SEC commissioner and President Trump’s nominee for permanent SEC chair, is moving closer to confirmation following earlier delays related to financial disclosures. Atkins is expected to further cement a market-friendly, deregulatory stance if appointed.
Crypto.com has also recently expanded its political affiliations, partnering with Trump Media on March 24 to launch a series of “Made in America”-themed exchange-traded funds (ETFs), further signaling its strategic positioning in a changing regulatory landscape.
Investor Takeaways
The SEC’s decision to close its case against Crypto.com has several implications for investors:
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Reduced Regulatory Risk: Crypto.com’s cleared status may bolster investor confidence in the platform, especially among institutional players.
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Positive Signal for U.S. Crypto Firms: The ruling indicates that regulatory hostility may be softening, potentially paving the way for more innovation and domestic crypto development.
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Market Re-entry: With the case behind it, Crypto.com could accelerate U.S. expansion efforts, re-engage with banking partners, and pursue product offerings previously delayed by legal uncertainty.
However, investors should remain cautious. The regulatory climate, while currently improving, remains politically volatile, and future leadership shifts could reverse course. Additionally, while Crypto.com avoided action this time, the firm—and the broader industry—remains under scrutiny from both national and international regulators.
Conclusion
The closure of the SEC’s investigation into Crypto.com marks a pivotal moment for both the company and the crypto industry in the U.S. It reinforces the perception of a regulatory shift under new leadership and offers a renewed sense of legal stability for crypto firms operating domestically.
Still, uncertainty lingers. The next steps for the SEC, including the confirmation of its permanent chair, will likely determine whether this current trend of regulatory restraint is temporary or the beginning of a more balanced approach to digital assets in the United States.
