- The SEC has concluded its investigation into the cryptocurrency exchange Crypto.com without pursuing any charges.
- This decision follows the exchange’s withdrawal of its lawsuit against the agency last December.
- The price of CRO has risen by 10% after the announcement.
The native token of Crypto.com, CRO, experienced a significant increase of over 10% on Thursday after it was revealed that the Securities & Exchange Commission (SEC) has closed its probe into the platform.
SEC wraps up investigation into Crypto.com without any legal action
Crypto.com announced in a press release that the SEC has concluded its inquiries into its operations and has no plans for legal proceedings.
This development represents another positive outcome for the cryptocurrency sector under the new leadership at the SEC, which has reduced its enforcement activities toward digital asset firms.
“We are gratified that the current SEC leadership has opted to close the investigation into Crypto.com without any enforcement actions or settlements,” stated Nick Lundgren, Chief Legal Officer of Crypto.com, in the press release.
The SEC had previously issued a Wells notice to Crypto.com last August, signaling its intention to take legal action against the company. In response, the exchange filed a lawsuit against the agency, claiming regulatory overreach.
However, Crypto.com voluntarily dismissed its lawsuit against the SEC in December after a discussion with President Donald Trump before his inauguration.
This latest announcement comes on the heels of Trump Media & Technology Group (TMTG) revealing a partnership with Crypto.com on Monday. The company entered into a non-binding agreement to collaborate with the exchange to launch its own exchange-traded funds (ETFs), with Crypto.com designated as the official token supplier.
The price of CRO surged by over 10% following these news, pushing its weekly increase to more than 40%.
Meanwhile, on-chain investigator ZachXBT has accused Crypto.com of manipulating tokens, alleging that the exchange intends to reissue 70 billion CRO tokens that had been taken out of circulation in 2021.
Critics argue that this action undermines the essential principles of decentralization and transparency in the cryptocurrency industry.