Crypto.com dropped its lawsuit against the U.S. Securities and Exchange Commission (SEC) following a meeting between CEO Kris Marszalek and President-elect Donald Trump this week.
Withdraws Lawsuit Against SEC
President-elect Donald Trump met with Crypto.com CEO Kris Marszalek at Mar-a-Lago, discussing potential appointments in his administration related to crypto and Bitcoin reserves.
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The meeting comes as Trumpโs transition team prepares to announce a new chair for the Commodity Futures Trading Commission (CFTC), a key position following Paul Atkinsโ nomination as SEC Chairman.
Shortly after, Crypto.com confirmed it would withdraw its lawsuit against the SEC, citing a desire to collaborate with the incoming administration on crypto regulation.
Speculation suggests the move could be tied to Crypto.comโs efforts to re-enter the U.S. market, following recent announcements regarding capital gains tax on U.S.-based cryptocurrencies.
Challenges SEC Overreach
On October 8, Crypto.com filed a lawsuit against the Securities and Exchange Commission after receiving a Wells Notice from SEC, a formal warning of legal action against the company for violating securities laws by offering unregistered securities.
In response, Crypto.com filed a lawsuit against SEC, arguing that the Commission is overstepping its authority by classifying most crypto transactions as securities, while excluding Bitcoin and Ethereum from this category. The company claims this approach is unfair, unauthorized, and lacks proper legal grounding.
Additionally, Crypto.com has asked both the SEC and the CFTC to clarify which agency should oversee crypto derivatives, aiming to bring more transparency to the regulatory framework.
Crypto.com is not alone in facing scrutiny, as companies like Robinhood, Uniswap, Consensys, and OpenSea also received similar warnings from the SEC earlier this year.
CRO Price Reacts Positively
The price of Cronos (CRO), the native token of the Crypto.com ecosystem, surged 18.8% in a single day to reach $0.2037 following the announcement.
Although the token later corrected and is trading around $0.1830 at the time of writing, CRO remains at levels not seen since 2022.
Since the U.S. presidential election earlier in November, the price of CRO has climbed by more than 189%.
On The Flipside:
- Donald Trump has already nominated crypto-friendly Paul Atkins as the new Chairman of the SEC. Atkins is known for his lighter regulatory approach to crypto compared to the current chairman, Gary Gensler.
Why This Matters
The decision to drop the lawsuit reflects Crypto.comโs strategy to engage with shifting regulatory dynamics in the US. The move suggests a broader alignment with emerging policy directions in the crypto industry under new leadership.
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