SEC Drops Case Against Crypto.Com
The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into Crypto.com without taking any enforcement action. The decision marks yet another decision of the regulator stepping back from its aggressive stance on the cryptocurrency industry.
This is another change following the dismissal of multiple lawsuits and investigations against major players like Kraken, Coinbase and Ripple Labs.
SEC Ends Its Crypto Crackdown
Crypto.com confirmed the news on Friday stating that the SEC had officially closed its case against the exchange. The regulator’s investigation had been ongoing for years and picked up in August 2024 when it issued a Wells Notice to the company. A Wells Notice serves as a preliminary warning, notifying a company that the SEC has found potential violations that could lead to enforcement actions.
However, there has been a major backstep by the SEC who has recently opted not to pursue any action against Crypto.com, effectively clearing the exchange of any wrongdoing. Crypto.com’s Chief Legal Officer, Nick Lundgren, welcomed the news but criticized the previous SEC administration for what he described as an unfair crackdown on the industry.
“Under the previous administration, the SEC was expanding its congressionally granted power in order to take a hard approach as the industry the former chair disfavoured,” Lundgren stated. “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.”
Crypto.com counter claim
In response to the SEC’s stance, Crypto.com took the unprecedented step of suing the regulator in October 2024. The exchange argued that the SEC had overstepped its authority by attempting to classify cryptocurrencies as securities through enforcement rather than legislation. Crypto.com accused the SEC of unauthorized rulemaking and claimed that its actions were harming the broader U.S. crypto industry.
Despite this legal confrontation, Crypto.com later dropped its lawsuit against the SEC in December 2024. The decision to withdraw the case came after Donald Trump’s victory in the U.S. presidential election and the nomination of Paul Atkins as the new SEC Chair. Atkins, who has significant holdings in crypto-related assets and a more industry friendly approach to digital asset regulation.
“Compliance and integrity are core to Crypto.com’s business, and we are excited to work with soon-to-be-confirmed Chair Atkins and the rest of the Commission on our long-awaited desire for legislation and rulemaking,” Lundgren added.
The SEC’s decision to drop its investigation into Crypto.com is part of a larger shift in its approach to cryptocurrency regulation. Since Trump took office in January 2025, the regulator has abandoned multiple high-profile cases against crypto firms. Lawsuits and investigations targeting Kraken, Coinbase, ConsenSys, and Ripple have all been dropped, signaling a retreat from the aggressive enforcement tactics of the previous administration.
Additionally, the SEC has dismissed investigations into NFT-related companies, including OpenSea and Yuga Labs, as well as other crypto firms like Gemini and Immutable. The regulator has also reversed controversial crypto accounting guidance, which had created uncertainty for firms operating in the space.
However, some companies are still facing scrutiny. Crypto issuer Unicoin, for example, remains under SEC review after receiving a Wells Notice alleging violations related to fraud and unregistered securities offerings. While many cases have been dropped, the SEC’s approach to specific firms remains uncertain.