The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Crypto.com without filing charges, making it the latest crypto firm to receive such a decision.
SEC Decision and Crypto.com Response
In a statement on Thursday, Crypto.com confirmed that the SEC would not be taking any action against the company. Crypto.com's Chief Legal Officer, Nick Lundgren, expressed regret over the need to endure a lengthy investigation and file a lawsuit against the SEC to uphold the rule of law. He criticized the prior SEC administration for leveraging its power against the industry.
Changes in SEC’s Regulatory Policy
Crypto.com filed a lawsuit against the SEC in October after receiving a Wells notice, indicating the potential for charges. In its lawsuit, the company claimed that the SEC had overstepped its jurisdiction and contested the agency’s stance that most cryptocurrencies should be classified as securities. This lawsuit was withdrawn in December, reflecting broader changes in the SEC’s policy. Recent shifts in SEC leadership have resulted in the withdrawal of contentious accounting guidance, cessation of actions against major crypto industry players, and the formation of a crypto task force.
Conclusion of Cases Against Other Crypto Firms
Since President Donald Trump took office, the SEC has dropped investigations against companies such as Coinbase, ConsenSys, Ripple, and Crypto.com. While some cases have been paused, such as those against Tron and Binance, other firms, like Unicoin, continue to face regulatory scrutiny after receiving a Wells notice.
The conclusion of the investigation into Crypto.com and other crypto firms signals a change in SEC policy, although some companies remain under regulatory watch. The sector continues to adapt to the evolving regulatory landscape.
