SEC Closes Probe Into Crypto.com, Native Token Fails to Maintain Upward Momentum as Cronos Slips 1.50%

Key moments

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

The U.S. Securities and Exchange Commission (SEC) has concluded its probe into Crypto.com without initiating enforcement proceedings, according to Crypto.com CEO Kris Marszalek. This development triggered a notable surge in the platform’s native token, Cronos (CRO).

Crypto.com received a Wells Notice from the SEC in August 2024, which prompted the exchange to file a lawsuit against the agency, alleging jurisdictional overreach. The legal challenge was later withdrawn following a meeting that had taken place before the inauguration of Donald Trump.

The market reacted positively to the news, with Cronos experiencing a significant price increase. Initially, the token surged over 10% on Thursday before settling at $0.1065. Friday saw CRO achieve a more modest rise to $0.1088, but the token subsequently fell 1.50% to 0.$1049.

Earlier this week, Crypto.com’s collaboration with Trump Media and Technology Group (TMTG) led to the launch of crypto exchange-traded funds (ETFs). This fueled market interest in both Trump Media and Cronos.

The conclusion of the SEC’s investigation into Crypto.com aligns with a broader trend of the agency retracting or dismissing several crypto-related cases. Recent withdrawals include probes into entities such as Gemini, Immutable, Robinhood, OpenSea, Uniswap, and NFT company Yuga Labs. Furthermore, on January 23rd, the SEC rescinded a controversial rule that would have required financial firms to list their cryptocurrency holdings as balance sheet liabilities.

The previous SEC administration had been criticized for its aggressive stance towards the cryptocurrency industry. Nick Lundgren, Chief Legal Officer of Crypto.com, had previously accused the SEC of setting out to hurt the crypto industry. The recent actions taken by the SEC under the new administration, along with the appointment of Paul Atkins as the new SEC Chair, whose 328 million net worth encompasses up to $6 million in crypto assets, indicate a shift towards a more balanced regulatory framework. Atkins has expressed a commitment to establishing clear regulations for digital assets.