The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into cryptocurrency exchange Crypto.com without pursuing any enforcement action, as announced by the company on March 27.
In October 2024, Crypto.com filed a lawsuit against the SEC after receiving a Wells Notice — a communication indicating that the agency was considering enforcement action.
The notice suggested that the SEC viewed certain tokens traded on Crypto.com’s platform as securities. In response, Crypto.com sued the SEC, arguing that the agency was overstepping its jurisdiction and improperly classifying most cryptocurrencies as securities. This lawsuit was withdrawn in December 2024.
Nick Lundgren, Chief Legal Officer of Crypto.com, commented on the decision: “We are pleased that the current SEC leadership has made the decision to close its investigation into Crypto.com with no enforcement action or settlement.”
Founded in 2016, Crypto.com serves over 140 million customers globally. The company emphasizes its commitment to regulatory compliance, security, and privacy within the cryptocurrency industry.
This development aligns with a broader trend of the SEC closing investigations into other cryptocurrency firms, including Kraken, Coinbase, and Ripple. The agency has also ceased inquiries into the non-fungible token (NFT) sector, affecting companies such as OpenSea and Yuga Labs, known for the Bored Ape Yacht Club (BAYC) NFT collection.
