Is Cronos (CRO) Skyrocketing After SEC Closes Crypto.com Probe?

Cronos (CRO), the native coin of Crypto.com, jumped nearly 11% in 24 hours. On March 28, it briefly reached $0.11 before falling back to around $0.10. This increase is part of an amazing 40% gain in the past week, signaling a renewed investor interest in CRO. 

SEC Closes Investigation into Crypto.com

Recently, the SEC informed Crypto.com that the agency’s inquiry had concluded, and that there would be no enforcement. This ends a long period of uncertainty that has impacted the operations and reputation of the platform in the marketplace. Crypto.com has faced SEC scrutiny since October 2024. That’s when the SEC issued a Wells notice, signaling plans to take legal action against the exchange. 

The regulator accused Crypto.com of being an unregistered broker-dealer and clearing agency. This prompted Crypto.com to sue the SEC. They claimed the SEC overstepped its authority by saying many cryptocurrency transactions are securities trades.

Legal Battle and Changing Regulatory Climate

In response to the SEC’s charges, Crypto.com’s CEO, Kris Marszalek, issued a sharp rebuke of the agency and urged an end to what he described as overregulation. The exchange’s lawsuit questioned the SEC’s authority and attempted to define more clear-cut regulations for the crypto environment.

But in December 2024, Crypto.com dropped its lawsuit as the same time significant changes took place in the political and regulatory environment in the U.S., with Donald Trump being re-elected as President suggesting that the politically-motivated, stringent regulations for cryptocurrency would probably reduce in the face of a new administration that had already attempted to regulate big players in the sector such as Kraken, Coinbase, and Uniswap.

Crypto.com’s Response and Future Outlook

After the SEC’s announcement, Nick Lundgren, the Chief Legal Officer of Crypto.com, accused the SEC of weaponization of its office against the crypto industry. He criticized the long investigation and the legal limbo that it caused. In his remarks, he claimed that Crypto.com has always taken compliance and integrity seriously. He was also encouraged by the fact that the anticipated new SEC Chair’s assurances would lead to a cooperative, rather than adversarial, relationship and that any new regulatory regimes would rely on legislative persuasion to ensure clarity and an orderly process, not enforcement. 

Conclusion

The SEC’s announcement to conclude its probe into Crypto.com has given CRO market movement a much-needed boost, with the token seeing double-digit increases. As regulatory conditions continue to develop, Crypto.com empowers its commitment to compliance and is hopeful for its future discussions with policymakers. Retail and institutional investors will be watching these developments closely as regulatory clarity may facilitate growth and more stability for the wider cryptocurrency asset class.