- SEC drops its investigation into Crypto.com, marking a major win for the exchange.
- Regulatory shifts under new leadership lead to dropped cases against top crypto firms.
- Crypto.com partners with Trump Media to launch ETFs under the Truth.Fi brand.
Crypto.com announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the company without pursuing any enforcement action. The exchange had been under regulatory scrutiny since receiving a Wells notice from the agency last year, indicating that charges could be forthcoming.
In a statement, Crypto.com’s Chief Legal Officer Nick Lundgren criticized the previous SEC administration, calling the investigation an overreach of power.
He said:
“Under the previous administration, the SEC weaponized and attempted to expand its congressionally granted power in order to harm an industry that its former chair disfavored.”
The SEC has not publicly commented on the decision. This development marks the latest in a series of dropped investigations against major cryptocurrency firms, signaling a shift in the agency’s regulatory approach.
Regulatory Shift Under New Leadership
The SEC’s decision to close its case against Crypto.com comes as part of a broader change in the agency’s stance toward the cryptocurrency industry. Since the beginning of the Trump administration, the SEC has rolled back several policies that were viewed as restrictive to digital asset firms.
Earlier this year, the agency withdrew its controversial crypto accounting guidance and ended legal actions against major exchanges, including Kraken and Coinbase. Additionally, it dropped its appeal in the case against Ripple, further reinforcing a shift in regulatory priorities.
Paul Atkins, the newly appointed SEC chair, has expressed an intent to focus on establishing a clear regulatory framework for digital assets. During a recent congressional hearing, lawmakers questioned Atkins about his past affiliations, including his connections to the now-bankrupt FTX.
In response, he stated that creating structured regulations for cryptocurrency would be a top priority under his leadership.
Crypto.com’s Legal Battle Against the SEC
Crypto.com took legal action against the SEC in October 2024, arguing that the agency had exceeded its regulatory authority. The lawsuit followed the Wells notice that suggested potential charges. The company contended that the SEC’s approach to classifying most cryptocurrencies as securities was not legally justified.
By December, Crypto.com dropped its lawsuit after seeing shifts in the SEC’s enforcement strategy. With the investigation now officially closed, the company has avoided penalties or legal consequences.
Crypto.com serves over 140 million customers globally and continues to expand its services. The resolution of the SEC probe removes regulatory uncertainty that could have affected its operations.
Crypto.com’s Partnership With Trump Media & Technology Group
Crypto.com recently announced a partnership with Trump Media & Technology Group (TMTG) to develop new financial products under the Truth.Fi brand. The initiative aims to introduce exchange-traded funds (ETFs) combining cryptocurrency and traditional U.S. industries like energy.
As previously reported, this collaboration marks TMTG’s entry into the financial services sector. The partnership remains in the early stages, with a non-binding agreement in place. More details about the product lineup and launch timeline are expected in the coming months.
With the SEC case closed, Crypto.com can now move forward with its business strategy without regulatory uncertainty. The company continues to position itself as a key player in the evolving digital asset market.
