The U.S. Securities and Exchange Commission has officially ended its investigation into Crypto.com, taking no enforcement action. The move marks a significant turn in the agency's regulatory stance and could signal a broader change in how crypto exchanges are treated under U.S. law.

The probe’s closure follows months of tension between Crypto.com and the SEC. In October 2024, the exchange had filed a lawsuit against the agency after receiving a Wells notice, a formal indication of potential enforcement. That case was dismissed in December, and the investigation now ends without fines or settlements.

Crypto.com Celebrates Victory

https://crypto.com/

Exchange avoids legal battle while maintaining full compliance

Nick Lundgren, Chief Legal Officer at Crypto.com, issued a public statement expressing satisfaction with the outcome. He welcomed the decision by the SEC's current leadership to drop the matter entirely. Lundgren also used the opportunity to criticize the previous SEC administration, accusing it of targeting the crypto sector unfairly.

Crypto.com CEO Kris Marszalek echoed those sentiments in a post on X (formerly Twitter), describing the prior administration’s actions as a “war on crypto.” He claimed that earlier regulatory efforts were designed to block crypto companies from essential infrastructure, including banking and investor access.

A Rare Position Among Crypto Exchanges

Crypto.com stands out as the only major exchange without legal entanglements

With the SEC’s investigation now closed, Crypto.com remains the only major global crypto exchange that has never been sued or forced into a settlement with the commission. The company boasts over 100 regulatory approvals worldwide, including money transmitter licenses in over 40 U.S. states.

Additionally, the exchange is registered with several key U.S. agencies, including the Financial Crimes Enforcement Network (FinCEN), the Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA). These credentials position Crypto.com as one of the most compliant exchanges in the world.

SEC’s Regulatory Tone Takes a Softer Turn

New leadership appears more open to dialogue and crypto innovation

The closure of the investigation reflects the broader shift under Acting SEC Chair Mark Uyeda. In recent weeks, the agency has dropped lawsuits against several high-profile crypto platforms including Uniswap, Coinbase, Robinhood, and Gemini.

As part of this evolving strategy, the SEC has also launched a Crypto Task Force headed by Commissioner Hester Peirce. The task force plans to hold public roundtables in the coming months, allowing stakeholders to discuss the future of crypto regulation in a more collaborative setting.

Industry Reacts to SEC's New Direction

Broader implications seen for regulatory landscape

Crypto industry leaders have welcomed the SEC’s softer approach, noting that collaboration is essential to fostering innovation. Analysts believe this move could set a precedent for upcoming decisions and help restore confidence among investors and developers in the U.S.

Despite the positive reception, questions remain about the consistency of regulation and the possibility of new enforcement tactics. Still, the case of Crypto.com provides a potential blueprint for exchanges navigating the regulatory maze.