In a dramatic turn of events, the U.S. Securities and Exchange Commission (SEC) has finally closed its investigation into Crypto.com without taking any leagl action. This determination concludes a seven-month investigation that was initiated with the serving of a Wells Notice to the exchange in August 2024. 

In a statement shared on Thursday, on their official website, Crypto.com announced that the lengthy investigation has come to an end, which is a big win for the company during these uncertain times in the crypto world. Nick Lundgren, Chief Legal Officer of Crypto.com, criticized the previous SEC administration, claiming that the agency had “weaponized and attempted to expand its congressionally granted power to harm an industry that its former chair disfavored.” He went to express his over the fact that the company had to endure a years-long investigation and take legal action to defend itself.

As of now, the SEC hasn’t replied to any requests for comments.The SEC not following up with enforcement on the investigation is viewed as a good sign for Crypto.com and the overall cryptocurrency sector. It could reflect an increasingly beneficial regulatory landscape for crypto exchanges trading in the United States.

Regulatory Pressure and Legal Battle

The United States Securities and Exchange Commission (SEC) and Crypto.com have been engaged in a legal dispute for a considerable amount of time. The agency has been closely examining the exchange’s business practices and how it categorizes digital assets. TIn October 2024, things became serious when the SEC served Crypto.com a Wells notice stating that they intended to bring charges against the corporation. 

In October of 2024, Crypto.com sued the SEC in response to the Wells notice. In the news release they said that, “our lawsuit contends that the SEC has unilaterally expanded its jurisdiction beyond statutory limits and separately that the SEC has established an unlawful rule that trades in nearly all crypto assets are securities transactions no matter how they are sold, whereas identical transactions in bitcoin (BTC) and ether (ETH) are somehow not.” But the company dismissed the lawsuit in December 2024, after Donald Trump won the election. His new administration indicated a pro-crypto direction, such as appointing Paul Atkins, who is crypto-friendly, to be the next SEC chair.

SEC’s Broader Shift in Crypto Regulation

The move to close the Crypto.com investigation comes in the wake of a string of closed cases against large crypto companies. The SEC, since early 2025, has also closed investigations into Kraken, Coinbase, Ripple, Gemini, and OpenSea. Several of these cases were opened during the last administration but have since been shelved after changes in regulations under the Trump regime,

This change in rules started when former SEC Chair Gary Gensler resigned earlier this year. The new leadership has canceled strict crypto accounting rules, ended lawsuits against crypto companies, and formed a task force to create clearer regulations for digital assets. On Wednesday, President Trump’s SEC Chair nominee, Paul Atkins, addressed lawmakers regarding the agency’s previous actions. He emphasized the necessity of clear regulations for digital assets, proposing additional shifts in the SEC’s strategy.

The victory of Crypto.com indicates a changing approach to crypto regulation, which may pave the way for more open and business-friendly laws. In the near future, cryptocurrency companies might get more clarification with the appointment of new SEC leadership. However, not all businesses are still being targeted by the law, and the industry will be interested to see how the SEC handles laws pertaining to digital assets going forward.