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Crypto.com Cleared by SEC, Cronos Token's Rally Falters

The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Crypto.com without taking any further action, announced Kris Marszalek, CEO of Crypto.com.

The SEC had issued a Wells Notice to Crypto.com back in August. This prompted the cryptocurrency exchange to file a lawsuit against the agency, claiming that the SEC was overstepping its boundaries. However, the legal case was dropped after a meeting between the two parties, which took place ahead of Donald Trump’s inauguration.

The SEC’s closure of the probe was met with a positive reaction in the market, pushing Cronos (CRO), the native token of Crypto.com’s ecosystem, to rally.

Cronos price today, January 27 | Source: CC0

Cronos saw a 10% price surge on Thursday, as the token traded at $0.1065 at 12:44 ET. By Friday, Cronos price experienced a more modest rise of 0.65%, reaching $0.1088. However, the token then fell by 1.50%, trading at $0.1049.

Earlier this week, there was news of Crypto.com’s partnership with Trump Media and Technology Group (TMTG) to launch crypto exchange-traded funds (ETFs). This development sparked interest in both Trump Media and Cronos in the market.

The SEC’s conclusion of its probe into Crypto.com aligns with the agency’s recent actions to retract or dismiss several cases related to cryptocurrency. Recently, the SEC withdrew probes into Gemini, Immutable, Robinhood, OpenSea, Uniswap, and NFT company Yuga Labs.

Moreover, on January 23rd, the SEC also rescinded a controversial rule that would have mandated financial firms to disclose their cryptocurrency investments as balance sheet liabilities.

The previous SEC administration, led by Gary Gensler, faced criticism for its alleged overreach and harshness towards the cryptocurrency industry.

During a House Financial Services Committee hearing in June, Nick Lundgren, Chief Legal Officer of Crypto.com, accused the SEC of engaging in an agenda to harm the crypto industry.

However, the new actions taken by the SEC under Chair Paul Atkins, appointed by Trump, and the appointment of a new commissioner, are signaling a potential shift towards a more balanced regulatory framework for crypto.

Atkins, whose 328 million net worth ranges from $15-50 million and includes up to $6 million in crypto assets, is known for his stance on establishing clear regulations for digital assets.