By Michael Scott
The US Securities and Exchange Commission confirmed ending the Crypto.com investigation without any enforcement action. The move by the SEC signals a shift from regulation by enforcement approach observed during Gary Gensler’s tenure as chair.
Key Highlights
- SEC ends inquiry into Crypto.com, allowing the firm to escape enforcement action
- Crypto.com received a Wells Notice that preceded charges leveled by the SEC in October last year
- Crypto.com terminated its lawsuit in December 2024 after Donald Trump’s victory
- Crypto.com has escaped enforcement actions and settlement with the SEC
- Crypto benefitting from the Commission’s trend of terminating lawsuits and investigations targeting crypto firms
The Securities and Exchange Commission disclosed that it would close the investigation into the crypto exchange Crypto.com to avoid further enforcement action. The announcement is a critical turning point in the US crypto regulatory landscape, which is shifting from attacking to supporting the industry.
Crypto.com Off SEC’s Radar
Crypto.com revealed the news in a March 27 blog Crypto.com announced the news in a blog post on Thursday, March 27, 2025. The exchange platform received the Wells Notice from the Commission issued as a preliminary warning the agency was considering enforcement action. The Crypto.com attorney filed a lawsuit to challenge the SEC in October last year. The exchange claimed the regulatory agency had overstepped its authority to regulate cryptocurrency tokens as securities.
The charges by Crypto.com were dismissed in December following the Donald Trump victory over Kamala Harris. This signaled a potential shift in support of the crypto industry,
The crypto.com chief legal executive, Nick Lundgren, hailed the decision of the SEC. The legal expert indicated that the current leadership under Mark Uyeda, as acting chair, is supporting the industry by ending the ongoing probe into Crypto.com.
Lundgren decried the approach of the SEC during Gensler’s tenure, which targeted crypto with a series of enforcement actions. The executive criticized the approach for weaponizing regulation by scaling congressional authority to hurt the crypto industry.
New Crypto Regulation
Crypto.com chief executive Kris Marszalek had similar sentiments via an X update on Friday, March 28. He criticized the previous administration for staging war on the crypto industry,
Marszalek noted the previous administration aimed at limiting the crypto industry’s growth. He observed the efforts to restrict access to the banking services cut off auditors and investors.
The termination of the investigations positions Crypto.com uniquely as the only leading crypto exchange yet to face a lawsuit or settle allegations with the SEC. The position affirms Crypto.com’s devotion to compliance with the laws of the land. The exchange scaled recently to over 100 approvals worldwide while running money transmitter licenses in over 40 states across the US.
Recently the Marszalek-led exchange revealed securing more registrations with the US agencies. In particular, Crypto.com secured the Financial Crimes Enforcement Network (FinCEN) registration, adding to the Commodity Futures Trading Commission (CFTC) and the Financial Industry Regulatory Authority (FINRA)
The decision to conclude the probe aligns with the SEC’s change in approach to withdraw lawsuits against OpenSea, Uniswap, and Robinhood. Among the cases struct from the SEC’s caseload are Immutable, Gemini, and Consensys, which suggest a lenient regulatory context for crypto businesses.
The leadership of Uyeda has brought reforms to the SEC’s approach by establishing the Crypto Task Force headed by pro-crypto Commissioner Hester Peirce. The unit plans to hold public roundtables on regulatory scope in the coming months.
Commissioner Uyeda has set the pace as President Trump’s nominee, Paul Atkins, an established investor in crypto-related assets. Lundgren is optimistic that the incoming Atkins-led leadership will fulfill the crypto industry’s desire for regulatory clarity this year.
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