SEC Ends Crypto.com Investigation Without Enforcement Action

Highlights:

• SEC concludes the Crypto.com investigation without enforcement action after seven months of scrutiny.
• Marszalek credits Crypto.com’s success to community support despite efforts to block progress.
• SEC shifts approach under acting chair Uyeda, creating a Crypto Task Force for transparency.

The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into Crypto.com, and no enforcement action will be taken against the cryptocurrency exchange, according to the firm’s CEO, Kris Marszalek. This marks a significant development for the platform, which had been under regulatory scrutiny for approximately seven months. 

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SEC Closes Crypto.com Investigation Without Action

In a March 27 X post, Marszalek explained that many tools were used to try to stop Crypto.com. This included blocking access to banking, auditors, and investors. He believed it was a planned effort to shut down the industry. Despite these challenges, he said the company’s success shows the strength of their vision and community support. He ended with a positive message, saying, “Onwards!”

They used every tool available to attempt to stifle us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to put an end to the industry.

— Kris | Crypto.com (@kris) March 27, 2025

Crypto.com’s chief legal officer, Nick Lundgren, expressed satisfaction with the SEC’s decision to close its investigation. In a statement on March 27, he accused the previous administration of misusing its authority to damage the crypto industry.

He stated:

“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 disfavoured.”

Lundgren noted that it was unfortunate for Crypto.com to endure a years-long investigation. The company even had to take legal action against the SEC to uphold the rule of law. He emphasized that compliance and integrity remain central to Crypto.com’s operations. He also expressed optimism about working with soon-to-be-confirmed Chair Atkins and the Commission.

​In October last year, Crypto.com received a Wells Notice from the U.S. SEC, indicating potential enforcement action regarding its token sales. In response, the company filed a lawsuit against the SEC and challenged the agency’s authority to classify most cryptocurrency transactions as securities.

However, in December, Crypto.com withdrew its lawsuit following political shifts that hinted at a more crypto-friendly regulatory environment. Recently, the SEC concluded its investigation into Crypto.com without taking any enforcement action. 

SEC Shifts Stance on Crypto as Investigations and Lawsuits Drop

Crypto.com’s announcement comes after a series of investigations and lawsuits by the SEC over the past five weeks. These actions impacted major players in the crypto space, including Consensys, Robinhood, Gemini, Coinbase, Uniswap, OpenSea, and most recently, Immutable. On Thursday, the SEC aslo dismissed its civil enforcement action against crypto trading firm Cumberland DRW with prejudice.

Since Mark Uyeda became acting SEC chair on January 20, the agency has taken a friendlier approach. This change followed the resignation of former chair Gary Gensler. To support this new direction, the SEC created a Crypto Task Force led by Commissioner Hester Peirce. On January 23, the SEC also canceled a controversial rule. This rule required financial firms holding crypto to record them as liabilities on their balance sheets.

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