Crypto.com SEC Investigation Officially Closed with No Action

Crypto.com Escapes SEC Probe Unscathed, Strengthening Its Credibility

The Securities and Exchange Commission (SEC) U.S. has closed the investigation of Crypto.com officially, without any enforcement action, as announced by Kris Marszalek, CEO of the exchange. He stated that it is a major achievement for the organisation’s regulatory system. 

SEC started this inquiry on Crypto.com to investigate whether the exchange had violated securities laws. The case was going on for about seven months after the Well notice in October last year. Marszalek confirmed that the inquiry was terminated without evidence of any wrongdoing and no penalties imposed. 

Kris Marszalek Confirms the Closure

The CEO shared the update through social media on 27 March X post, stating, ”The fact that we not only persevered but came back stronger is a testament to our vision and the community supporting it. Onwards!”.

He further added, ”They used every tool available to attempt to stifle us, restricting access to auditors, banking, investors, and beyond.” Further, he added, "It was a calculated attempt to put an end to the industry,”. 

Source: X

Marszalek highlighted that the platform has been consistently working to meet regulatory mandates and maintain transparency with the concerned authorities. He said that the decision by the SEC is a platform’s validation for the efforts made to operate lawfully. 

A Relief Amid Regulatory Crackdowns

This decision is a sign of relief for the organisations operating in the industry, as the investigations are regularly intensifying. Over the last two years, several big platforms like Kraken, Coinbase, and Binance have encountered such legal scrutiny and regulatory actions from the SEC for alleged breaches of security laws. 

The Crypto.com case is followed by similar decisions for Coinbase, Consensys, Robinhood, and Uniswap. After the appointment of Mark Uyeda as the SEC’s new leader, the commission has adopted a better approach towards organizations. They have also created a new task force to support the new friendly approach. It signals that the commission is becoming lenient towards crypto firms. The SEC has also removed a controversial rule that said financial firms that are holding crypto to hold them as liabilities in the balance sheet. 

A clean exit of the exchange from the scrutiny will result in fostering its credibility. The organisation is globally expanding its services and has obtained regulatory approvals in major markets, including the UK, Dubai, and Singapore. 

Impact on the Market

After the decision, the native token of Crypto.com, Cronos (CRO), experienced a significant increase in price, as investors' outlook is positive on the news. The market reflected that the closure of this lawsuit is an indication of compliance and stability for the exchange. 

Professionals believe that this incident will offer a competitive edge to Crypto.com. It will be considered as the trusted platform. It will also inspire other platforms to prioritise transparency and compliance to avoid such lawsuits.