Crypto.com CEO Celebrates Victory as SEC Ends Investigation Without Charges
Crypto.com CEO Kris Marszalek has declared a major victory after the U.S. Securities and Exchange Commission (SEC) dropped its investigation into the company without taking any enforcement action. This decision ends a seven-month legal battle that began in August 2024 and highlights a shift in how regulators approach the cryptocurrency industry.
The SEC Investigation Closes With No Charges
The SEC started investigating Crypto.com in August 2024 after sending a Wells notice – a warning that the agency might sue the company for operating as an unregistered exchange. The probe focused on whether Crypto.com violated securities laws by listing certain tokens. However, on March 27, 2025, the SEC officially closed the case without filing charges or requiring a settlement. Crypto.com’s Chief Legal Officer, Nick Lundgren, called the decision a win for the company and the broader crypto community.
Marszalek shared the news on social media, criticizing the SEC’s earlier actions. He accused the agency of trying to “stifle” the crypto industry by making it hard for companies like Crypto.com to work with banks, auditors and investors. “It was a calculated attempt to put an end to the industry,” he wrote, adding that the company’s survival proved its strength and the support of its users.
How Crypto.com Fought Back
When the SEC first sent the Wells notice, Crypto.com did not back down. Instead, the company sued the SEC in October 2024, arguing that the regulator had overstepped its authority. The lawsuit claimed the SEC was unfairly targeting crypto companies without clear rules. However, Crypto.com dropped the lawsuit in December 2024 after Donald Trump won the presidential election. At the time, Marszalek met with Trump to discuss pro-crypto policies, signaling hope for friendlier regulations under the new administration.
The company’s legal team also pointed to recent court rulings that limited the SEC’s power over crypto. For example, a judge ruled in 2023 that XRP tokens sold on exchanges are not securities – a decision that helped Crypto.com argue its case.
A New Era for Crypto Regulation
The SEC’s decision to drop the Crypto.com case is part of a bigger change in how the agency handles crypto. After Gary Gensler stepped down as SEC chair in January 2025, acting chair Mark Uyeda launched “SEC Crypto 2.0,” a task force led by pro-crypto commissioner Hester Peirce. This group aims to create clearer rules for digital assets and work more closely with crypto companies.
Under Uyeda, the SEC has also closed investigations into other major crypto firms, including Coinbase, Ripple and Kraken. These moves suggest the agency is moving away from aggressive lawsuits and toward collaboration. President Trump’s pick for SEC chair, Paul Atkins -a crypto supporter with millions in crypto investments- could further ease tensions between regulators and the industry.
What This Means for Crypto.com
Crypto.com now stands out as one of the few global crypto exchanges never sued or fined by the SEC. The company holds over 100 regulatory licenses worldwide, including approvals in 40 U.S. states. Lundgren emphasized that compliance is central to Crypto.com’s strategy and the company plans to keep expanding its services, like custody solutions for exchange-traded funds (ETFs).
The SEC’s decision also boosts confidence in Crypto.com’s operations. During the investigation, the exchange continued growin; it sponsors major sports events like the UEFA Champions League and recently partnered with Trump Media to launch “Made in America” themed ETFs.
Looking Ahead
While the SEC’s softer approach is a relief for crypto companies, regulations remain unclear. Marszalek and other industry leaders are pushing for laws that protect innovation without stifling growth. For now, Crypto.com’s victory shows that standing up to regulators can pay off – especially as political and legal landscapes evolve.
FAQs
Why did the SEC investigate Crypto.com?
The SEC investigated whether Crypto.com operated as an unregistered exchange by listing tokens it considered securities. The probe began in August 2024.
What changed the SEC’s decision to drop the case?
New SEC leadership under acting chair Mark Uyeda shifted the agency’s focus to collaboration over lawsuits. Political changes after the 2024 election also played a role.
What does this mean for Crypto.com’s future?
The company plans to expand its services, like ETFs and work with regulators to ensure compliance.
