SEC closes investigation into Crypto.com with no enforcement actions
Crypto.com Cleared as SEC Drops Investigation: A Turning Point for Crypto Regulation?
Crypto.com has officially announced that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into the cryptocurrency exchange, making it the latest crypto firm to have a probe closed without enforcement action. This development comes as the SEC re-evaluates its stance on digital assets under the new administration.
Crypto.com Cleared of SEC Investigation
In a statement released on Thursday, Crypto.com confirmed that the SEC had decided against pursuing any enforcement action against the company. While the SEC has not issued an official comment on the decision, Crypto.com’s Chief Legal Officer, Nick Lundgren, took the opportunity to reflect on the regulatory climate of recent years.
According to Lundgren, the previous SEC administration aggressively expanded its congressionally granted powers to clamp down on the crypto industry, influenced by the former SEC chair’s unfavorable stance toward digital assets. He lamented the need for Crypto.com to endure a prolonged investigation and even file a lawsuit against the SEC to uphold what it viewed as the rule of law.
A Broader Shift in SEC’s Crypto Regulation Approach
Crypto.com is not the only firm benefiting from the SEC’s evolving position on cryptocurrency regulation. Over the past few months, the agency has dismissed multiple investigations and lawsuits involving major crypto firms, including Kraken, Coinbase, and Ripple. Earlier this month, the SEC also withdrew its appeal in the high-profile case against Ripple, a significant move signaling a departure from its previous enforcement-heavy approach.
Crypto.com’s Legal Battle with the SEC
The resolution of the SEC’s investigation into Crypto.com marks the conclusion of a tumultuous legal journey. In October, the exchange took the bold step of filing a lawsuit against the SEC after receiving a Wells notice—a formal indication that the agency was considering enforcement action. Crypto.com’s lawsuit challenged the SEC’s broad classification of most cryptocurrencies as securities and argued that the agency was exceeding its regulatory jurisdiction. However, as the regulatory landscape began shifting, the lawsuit was dropped in December.
Political Changes and Their Impact on Crypto Regulation
The SEC’s recent actions coincide with significant political shifts in the U.S. government. With the Trump administration’s return to power and the departure of former SEC Chair Gary Gensler earlier this year, the agency has undergone notable policy reversals. Since the beginning of 2025, the SEC has repealed controversial crypto accounting guidance, halted multiple enforcement actions, and even established a dedicated crypto task force.
Further highlighting the changing regulatory environment, Paul Atkins, President Trump’s nominee for SEC chairman, recently faced scrutiny from lawmakers regarding the SEC’s past enforcement actions and his connections to the now-defunct FTX. During the hearing, Atkins emphasized his commitment to developing a clear and structured regulatory framework for digital assets, signaling a more predictable regulatory future for the crypto industry.
Crypto.com Expands Partnerships Amid Regulatory Clarity
With the conclusion of its legal battle, Crypto.com is moving forward with strategic partnerships. Earlier this week, Trump Media and Technology Group Corp. announced a non-binding agreement with Crypto.com to collaborate on a series of exchange-traded funds (ETFs) and other financial products under the Truth.Fi fintech brand. This agreement reflects a growing trend of traditional and digital financial entities exploring new investment avenues within the crypto ecosystem.
SEC’s Crypto Case Dismissals: A Pattern Emerges
In the short span of fewer than three months since President Trump took office, the SEC has dropped investigations into several major crypto-related companies, including:
Crypto Exchange Gemini
Trading Platform Robinhood
NFT Marketplace OpenSea
NFT Company Yuga Labs
Blockchain Gaming Firm Immutable
Additionally, litigation against major crypto firms such as Kraken, Coinbase, ConsenSys, Ripple, and Cumberland DRW has been dismissed, further underscoring the agency’s changing approach. However, not all crypto firms are out of the woods just yet.
Remaining Legal Uncertainties in the Crypto Industry
While many firms have had their investigations dropped, others still face regulatory scrutiny. Some lawsuits have merely been paused rather than dismissed, including the SEC’s cases against Tron and Binance, leaving their legal standing uncertain.
Furthermore, crypto issuer Unicoin remains under SEC review. The company received a Wells notice last year regarding potential charges related to fraud, deceptive practices, and the sale of unregistered securities. A Unicoin spokesperson recently stated:
“As of now, we have not received any new updates or formal feedback from the SEC regarding our registration. We are fully committed to compliance and transparency, and we continue to work toward securing the necessary approvals for our planned offerings.”
What Lies Ahead for Crypto Regulation?
The SEC’s recent dismissals suggest that the regulatory landscape for cryptocurrency is undergoing a significant transformation. With the new administration’s focus on developing a clearer regulatory framework and the appointment of crypto-friendly officials, the future of digital asset regulation may take a more structured and industry-inclusive approach.
For now, the crypto industry welcomes the SEC’s newfound leniency, but the long-term direction of U.S. crypto policy remains uncertain. Will this shift mark a permanent change toward a more balanced regulatory approach, or will new challenges emerge in the evolving crypto landscape? Only time will tell.