Crypto.com Clears SEC Hurdle, Shifts Gear in Crypto Landscape
Securities regulatory probe on Crypto.com concludes without penalties; anticipates significant exchange-traded fund debut.
In a significant move for the crypto industry, Crypto.com has announced the termination of its probe by the U.S. Securities and Exchange Commission (SEC) without facing any regulatory sanctions. CEO Kris Marszalek, hailing the decision on March 27, praised the resilience of the firm.
"The SEC threw every stone at us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to snuff out the industry. But we've not only weathered the storm, but bloody hell, we've grown stronger. This is a testament to our mission and the community that's stood by us. Onwards!" he declared.
The inquiry had its roots in a Wells notice issued in August, foreshadowing potential legal action. Yet, Crypto.com remained steadfast, filing a lawsuit against the SEC led by former chair Gary Gensler in October. The firm accusingly asserted that the SEC overstepped its bounds.
Nick Lundgren, Crypto.com's chief legal officer, lauded the resolution, stating, "We're thrilled that the current SEC leadership has decided to wrap up its investigation into Crypto.com." He also critiqued the previous administration for what he deemed as a misuse of power intended to harm the crypto industry.
Under new leadership, the SEC has taken a less confrontational approach. Mark Uyeda's appointment as acting chair on January 20 led to a more cooperative stance from the agency. The formation of a Crypto Task Force with SEC Commissioner Hester Peirce signals a willingness to engage the industry.
Recent weeks have seen the dismissal of several high-profile cases, such as those against Coinbase, Consensys, Robinhood, and Uniswap. The SEC also dropped its civil enforcement case against Cumberland DRW on March 27. The controversial rule mandating financial firms to log crypto holdings as liabilities was rescinded on January 23.
Meanwhile, Paul Atkins, nominee for the SEC chair position under the Trump administration, awaits confirmation, potentially poising the commission for an ongoing shift in direction.
On the business front, Crypto.com has joined forces with Trump Media to launch a series of "Made in America"-branded exchange-traded funds (ETFs). Scheduled to debut on March 24, these ETFs will receive infrastructure and custody services from Crypto.com. The portfolio may incorporate prominent tokens like Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and Cronos (CRO), underscoring Crypto.com's ambitions to redefine its presence in the evolving crypto investment landscape.
With regulatory hurdles on the decline and fresh opportunities unfolding, Crypto.com seems well-positioned to expand its market clout in the coming months.
[1] [source][2] [source][3] [source][4] [source][5] [source]
- CEO Kris Marszalek of Crypto.com, in a statement on March 27, praised the decision by the U.S. Securities and Exchange Commission (SEC) to terminate their probe without any regulatory sanctions, noting that the firm had not only weathered the storm but grown stronger.
- The SEC's decision came after the firm filed a lawsuit against the SEC led by former chair Gary Gensler in October, accusing the agency of overstepping its bounds.
- The current SEC leadership, under acting chair Mark Uyeda's appointment on January 20, has taken a less confrontational approach and has shown a willingness to engage the industry through the formation of a Crypto Task Force with Commissioner Hester Peirce.
- In recent weeks, the SEC has dismissed several high-profile cases, including those against Coinbase, Consensys, Robinhood, and Uniswap, and has dropped its civil enforcement case against Cumberland DRW on March 27. These moves signal a potential shift in the regulatory landscape for the crypto industry.
