- SEC closes Crypto.com probe with no action, marking a shift in regulatory tone under expected leadership change.
- Crypto.com’s legal win highlights its strong compliance, avoiding lawsuits while securing 100+ global regulatory approvals.
- New SEC leadership under Paul Atkins could bring clearer crypto regulations, easing industry uncertainty and compliance hurdles.
The U.S. Securities and Exchange Commission (SEC) has formally concluded its investigation of Crypto.com without pursuing any enforcement measures, according to Eleanor Terrett. This ruling comes after the SEC’s Wells warning from October of last year.
However, Crypto.com filed a preemptive lawsuit against the agency, claiming that it had overreached its jurisdiction. After former President Donald Trump declared his intention to name Paul Atkins as the new SEC head, the exchange subsequently abandoned the complaint in December.
A Turning Point for Crypto Regulation
Last year, regulatory authorities went after crypto firms aggressively, shutting off bank, accountant, and investor access. The industry struggled to become legit and comply. But Crypto.com was the single exception, evading lawsuits and settlements while accumulating more than 100 regulatory permits worldwide.
Crypto.com’s Chief Legal Officer, Nick Lundgren, stressed that ethics and compliance continue to be the company’s primary priority. He criticized the previous SEC leadership for going beyond the bounds of congressional authority. Furthermore, he emphasized that the inquiry was pointless and would simply increase industry uncertainty. Lundgren expressed hope for regulatory clarity and collaboration as Paul Atkins is about to be confirmed as SEC chair.
Crypto.com’s Resilience and Regulatory Strength
Aside from evading legal regulation, according to the company’s news release, it leads the global cryptocurrency market in terms of compliance. It holds a FinCEN-registered money services business license in addition to more than 40 state money transmitter licenses.
Additionally, it is listed as a designated contract market (DCM) and derivatives clearing organization (DCO) with the Commodities Futures Trading Commission (CFTC). The website is also a FINRA-registered broker-dealer and a licensed qualified custodian for digital assets.
This extensive regulatory framework ensures Crypto.com’s commitment to transparency and security. While other crypto firms faced enforcement actions, Crypto.com maintained its operations without regulatory setbacks.
