SEC’s Crypto Investigation Ends: Did They Just Forget to Hit ‘Send’?

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In a turn of events that could only be described as “surprising” if you were living under a rock, the U.S. Securities and Exchange Commission (SEC) has decided to close its investigation into Crypto.com. Yes, you heard that right! No action taken, no dramatic courtroom showdowns, just a quiet little “never mind” as part of a broader trend of regulatory backpedaling that has left many scratching their heads and wondering if the SEC has been binge-watching too many legal dramas.

Investigation Concludes with No Action Taken

Crypto.com’s CEO, Kris Marszalek, confirmed the news, probably while sipping a celebratory drink that may or may not have been a piña colada. He stated that the firm had successfully navigated the regulatory scrutiny, which is a fancy way of saying they dodged a bullet that was never really fired in the first place.

In a statement that could be mistaken for a motivational poster, Marszalek claimed that regulators had tried to suppress the company and the entire crypto industry. In an X post (which is not a new superhero team, but rather a social media platform), he declared,

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

Legal Battle and Regulatory Shift

the lawsuit was later withdrawn, probably after someone realized it was like bringing a rubber chicken to a knife fight.

Nick Lundgren, Crypto.com’s chief legal officer, welcomed the SEC’s decision with the enthusiasm of a kid on Christmas morning, stating,

“We are pleased that the current SEC leadership has made the decision to close its investigation into Crypto.com.”

He also took a moment to throw some shade at the previous SEC administration for allegedly overstepping its authority, which is a bit like criticizing a cat for knocking over a vase—everyone knows it’s just in their nature.

SEC’s Evolving Approach to Crypto Regulation

The closure of the Crypto.com probe is part of a broader shift in the SEC’s stance toward the crypto industry. In recent weeks, the regulator has dropped several cases against major crypto firms, including Kraken, Coinbase, and others, as if they were cleaning out their closet and decided to donate the “gently used” investigations to charity. Additionally, they decided to forgo an appeal in their case against Ripple, which is like saying, “You know what? Let’s just forget this ever happened.”

In a move that has left many scratching their heads, the SEC recently repealed a controversial rule that required financial institutions holding crypto assets to record them as liabilities on their balance sheets. Because who needs clarity in accounting, right?

Changing Leadership

This regulatory shift coincides with changes in SEC leadership. After the resignation of former Chair Gary Gensler, Mark Uyeda took over as acting chair on January 20, leading to a more lenient regulatory approach. It’s like the SEC decided to swap out their stern principal for the fun substitute teacher who lets you play games instead of doing math.

Meanwhile, Paul Atkins, a nominee favored by former President Donald Trump, is making his way toward confirmation as the new SEC chair. Because nothing says “stability” like a revolving door of leadership!

The regulatory pivot suggests a potential thawing in the relationship between U.S. regulators and the crypto industry, offering firms greater clarity and stability moving forward. Or at least, that’s the hope. After all, in the world of crypto, anything can happen—like a cat learning to play the piano.

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2025-03-28 19:07