Crypto.com Accuses The SEC Of A “Misguided” Approach To Digital Asset Regulation

Crypto.com CEO Kris Marzalek said that the US Securities and Exchange Commission (SEC) has closed its investigation into the crypto exchange

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into crypto exchange Crypto.com without imposing a penalty or taking any further legal action, the company’s CEO Kris Marzalek said.

“After years of relentless assault from the SEC, we can finally confirm that they have closed their investigation into Crypto.com without any penalties or legal action being pursued,” Marzalek said in a March 27 X post.

According to Marzalek, the SEC’s decision comes after the agency used “every tool available” to try and shut down Crypto.com. He said that the SEC’s actions included “restricting access to banking, auditors, investors, and beyond.”

“It was a calculated attempt to put an end to the industry. Despite the agency’s attempts, we remained steadfast in our commitment to providing the best possible service to our users and to advancing the broader crypto ecosystem,” he added.

The SEC’s investigation into Crypto.com began in August 2023, when the agency issued a Wells notice to the company. A Wells notice is a letter from the SEC that signals its intention to take legal action against a company.

In its notice to Crypto.com, the SEC said that it was considering filing a complaint against the exchange for allegedly violating U.S. securities laws by offering unregistered securities to U.S. investors.

The agency also said that it was investigating whether Crypto.com had engaged in any fraudulent or deceptive practices.

Crypto.com responded to the SEC’s lawsuit by filing a lawsuit against the agency in October. In its filing, the exchange accused the then Gary Gensler-led agency of overstepping its authority and taking a “misguided” approach to crypto regulation.

Specifically, Crypto.com said that the SEC had no jurisdiction over its crypto offerings, as they were not sold to U.S. investors. The exchange also said that the SEC’s claims were based on a “misreading” of U.S. securities laws.

CRO Is Top Performer Even Amid Token Burn Controversy

Investors reacted positively to the news. The platform’s native Cronos (CRO) token pumped over 8% in the last 24 hours to trade at $0.1093 as of 1:35 a.m. EST, according to CoinMarketCap. The pump made CRO the top performing major crypto in the past 24 hours.

While CRO’s price might have risen, there is still a cloud of controversy surrounding Crypto.com and its CRO token. It all started when the exchange announced that it will be reissuing 70 billion tokens that were burned in 2021, days before Trump Media & Technology entered into a non-binding agreement with the exchange.

Many said that the move undermined the principles of decentralization and transparency. Onchain investigator ZachXBT even went on to say that “CRO is no different from a scam.”

CRO is no different from a scam

Your team just reissued 70B CRO a week ago that was previously burned “forever” in 2021 (70% total supply) and went against the community wishes as you control majority of the supply.

Unsure why Truth would chose a partnership with your exchange… pic.twitter.com.

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