Crypto.com Crushes SEC Probe, Steps into Brighter Horizons
Crypto.com successfully evades SEC scrutiny, intends to initiate a significant ETF rollout
Crypto.com, the digital asset exchange platform, is breathing a sigh of relief as it triumphs over the US Securities and Exchange Commission (SEC) investigation, without facing any enforcement action. The firm's CEO, Kris Marszalek, shared the good news on March 27 via a post, praising the company's resilience in the face of adversity.
Marszalek expressed, "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." He further added that the fact the firm not only persevered but thrived reflects the strength of its vision and the unwavering support from its community.
The investigation stemmed from a Wells notice issued in August, indicating the SEC's intent to pursue legal action. However, Crypto.com stood its ground, filing a lawsuit in October, accusing the SEC, then under the chairmanship of Gary Gensler, of overstepping its authority.
The shift in the SEC's stance mirrors a broader change in the agency's approach. Since Mark Uyeda took on the role of acting chair on January 20, the SEC has shown a more cooperative attitude towards crypto firms. The establishment of a Crypto Task Force led by SEC Commissioner Hester Peirce signals the commission's willingness to engage the industry.
Several high-profile cases have been dismissed recently, including actions against Coinbase, Consensys, Robinhood, and Uniswap. The SEC also dropped its civil enforcement case against Cumberland DRW on March 27. Furthermore, the controversial rule requiring financial firms to record crypto holdings as liabilities was rescinded on January 23.
Paul Atkins, Trump's nominee for SEC chair, is awaiting confirmation, potentially furthering the commission’s new direction.
With regulatory hurdles behind it, Crypto.com is looking forward to expanding its market influence. The platform recently partnered with Trump Media to introduce a series of “Made in America”-themed exchange-traded funds (ETFs). Announced on March 24, the collaboration will see Crypto.com providing infrastructure and custody services for these ETFs, potentially including prominent tokens like Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and Cronos (CRO).
The future looks bright for Crypto.com as it positions itself in the evolving crypto investment landscape. With regulatory challenges subsiding and new opportunities emerging, the platform is ready to make its mark in the coming months.
Under its new leadership, particularly with Acting Chair Mark Uyeda and newly appointed Chair Paul S. Atkins, the U.S. Securities and Exchange Commission (SEC) has shown a more cooperative stance towards crypto firms. The SEC has been hosting roundtable discussions on various topics related to crypto assets, such as custody and tokenization, focusing on creating a "rational, fit-for-purpose regulatory framework" for digital assets to facilitate growth and innovation while ensuring regulatory clarity. Chair Atkins emphasized the need for innovation and regulation to coexist, fostering an environment supportive of both.
- The change in the SEC's stance under Acting Chair Mark Uyeda and potential future Chair Paul S. Atkins has been notable, as they have demonstrated a more cooperative approach towards crypto firms.
- The SEC under McUyeda's leadership has been hosting roundtable discussions focused on creating a "rational, fit-for-purpose regulatory framework" for digital assets, aimed at facilitating growth, innovation, and providing regulatory clarity.
- Chair Atkins, who is awaiting confirmation, has emphasized the importance of innovation and regulation coexisting, to foster an environment that supports both growth and regulatory oversight.
- As regulatory hurdles subside and opportunities emerge, Crypto.com, under new regulatory climate, is preparing to make its mark in the evolving crypto investment landscape.
