SEC Closes Investigation Into CryptoCom Without Recommending Enforcement Action

The U.S. SEC has closed its investigation into Crypto.com without recommending any enforcement action against the exchange. 

In a press release yesterday, Crypto.com confirmed that the SEC had closed its investigation, and that no enforcement action would be filed against the exchange.  

SEC Investigation into CryptoCom

Recall that the former SEC administration issued a Wells Notice to Crypto.com last October. The notice indicated that the SEC was investigating Crypto.com for possible violation of federal securities laws. Notably, the agency usually recommends enforcement action against recipients of Wells Notices in most cases. 

In response to the Wells Notice, Crypto.com almost immediately sued the SEC, arguing that the securities regulator overstepped its jurisdiction. However, the exchange dropped the lawsuit in December 2024 after President Donald Trump appointed Paul Atkins to replace Gary Gensler as SEC Chair.

Interestingly, the SEC has returned the favor by also closing its investigation into the exchange and not recommending any enforcement action. 

CryptoCom Execs Issue Statements 

Reacting to the development, Crypto.com’s Chief Legal Officer Nick Lundgren expressed relief over the decision. He slammed the previous SEC leadership for attempting to expand its congressional powers to harm the crypto industry. 

Kris Marszalek, CEO at Crypto.com, also expressed excitement at the SEC’s latest decision. He commended the crypto industry for surviving the war orchestrated by the previous administration. Marszalek noted that this move was an attempt to stifle the industry by restricting crypto entities from accessing banking services.

“The fact that we not only persevered but became stronger is a testament to our vision and the community supporting it. Onwards!” Marszalek remarked.

SEC Ends Other Crypto Cases 

Meanwhile, the SEC’s decision to end its investigation into Crypto.com comes after its internal closed-door meeting held yesterday at 2:00 p.m. (ET). As previously reported, the commission was expected to discuss enforcement proceedings and the institution and settlement of administrative and injunctive actions. 

After the meeting, it officially announced the dismissal of litigation against top crypto entities like ConsenSys, Kraken, and Cumberland. 

NEW: The @SECGov has formally announced litigation dismissal against @krakenfx, @Consensys and @CumberlandSays. pic.twitter.com/75NW9u5qrT

— Eleanor Terrett (@EleanorTerrett) March 27, 2025

The SEC has yet to issue an official statement for other crypto-related litigation it has decided to dismiss, like the Ripple case. This delay is because SEC’s commissioners did not vote on whether to approve the dismissal as scheduled. 

Top crypto journalist Eleanor Terrett suggested that the regulator would first ask Judge Analisa Torres to lift the injunction against Ripple’s institutional XRP sales before holding the vote.