The U.S. SEC has officially closed its investigation into Crypto.com without taking any enforcement action. This outcome marks a relief for the exchange amid growing regulatory scrutiny in the crypto industry. The decision raises questions about the SEC’s evolving stance on digital asset platforms.
Crypto.com: A Clean Slate
The inquiry finished seven months later following Crypto.com getting a Wells Notice in August suggesting the SEC was considering enforcement action. The agency, though, did not act against the deal.
Kris Marszalek, CEO of Crypto.com, went to social media to applaud the result, lauding his company’s tenacity and dedication to following rules. They tried to limit our access to banks, auditors, and investors. But we carried on and came out stronger. Onward!
According to Lundgren, the closure demonstrates how the SEC’s current system has changed. Lundgren claims the agency’s prior regime was hostile toward the cryptocurrency sector; the present regime appears more willing to interact with such market players.
From Wells Notice to Settlement.
In August, the SEC issued Crypto.com a Wells Notice, prompting the company to sue the agency in October, alleging it was overstepping and unjustly attacking the sector. As the regulatory environment changed, the company dismissed the lawsuit on its own in December, thereby resolving the matter.
This shift corresponds to the SEC’s recent steps reducing its enforcement efforts against crypto projects, including Coinbase, Robinhood, Gemini, Uniswap, and OpenSea. Under its new leadership, the agency formed a Crypto Task Force to develop more open dialogue with the sector and more defined rules.
A Unique Crypto Space Achievement
Crypto.com is one of the few significant exchanges that the SEC has not sued or settled with. The crypto platform still holds over 100 regulatory certifications worldwide, including important registrations with U.S. financial authorities.
Negotiating an Evolving Regulatory Terrain.
Crypto.com looks ready to use its clean record with a robust compliance structure as views on cryptocurrency rules evolve. The exchange’s worldwide activities show its desire to concentrate on the long term, which is crucial for the sector’s increasing popularity.
Within the bounds of the regulatory expectations, Crypto.com and other crypto firms are legally operating due to the SEC’s drop of investigation of Crypto.com. This emphasizes the potential for authorities and the cryptocurrency sector to cooperate more closely going forward.
