The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Crypto.com, dropping the case against the company. This marks one of the last major probes dropped during the Trump administration.
Closure of Crypto.com Case
Crypto.com announced that the SEC would not pursue any enforcement action following a multi-year investigation. The SEC has not yet commented publicly on this decision.
Reaction and Implications for Crypto.com
Crypto.com’s Chief Legal Officer, Nick Lundgren, stated that the SEC weaponized and attempted to expand its congressionally granted power to harm an industry its former chair disfavored. “It is unfortunate that we were forced to endure this years-long investigation and file our own suit against the SEC to protect the rule of law.”
Overall Policy Changes at the SEC
The decision to close the case against Crypto.com is part of a broader shift in stance for the SEC since the start of the Trump administration and the departure of former Chair Gary Gensler in January. The agency has halted several high-profile enforcement actions and launched a new crypto-focused task force.
Crypto.com appears to be gaining momentum again post-investigation closure, while the SEC may offer the clearer and more streamlined regulatory framework the industry has been calling for. This could represent a necessary reset for the entire industry.
