Crypto.com has decided to drop its lawsuit against the United States Securities and Exchange Commission (SEC). This announcement came soon after a meeting between the exchange’s CEO, Kris Marszalek, and President-elect Donald Trump at Mar-a-Lago on December 16. This change could indicate that the exchange wants to work more closely with the new administration.
Crypto.com to Work Closely With the New Trump Administration
Crypto.com has filed a lawsuit to challenge the SEC’s decision to classify some digital assets as securities. This has sparked debates in the crypto industry.
However, analysts believe the meeting between Crypto.com’s CEO and Trump may have influenced this decision. Trump has shown interest in promoting technological innovation and has indicated he supports the growth of the crypto and blockchain sectors.
This shift contrasts sharply with the SEC’s traditionally strict oversight, often criticized for stifling innovation. With the lawsuit dropped, Crypto.com wants to work closely with the new government, influencing future rules that benefit the industry. Legal experts say that building this relationship could give the exchange a smart advantage as it tries to grow its business in the United States.
Details of Crypto.com Lawsuit Against the SEC
In October, the cryptocurrency exchange filed a lawsuit against the SEC, Gary Gensler, and the agency’s four commissioners. This legal action came in response to a Wells Notice, a preliminary warning indicating potential charges from the regulator. Crypto.com affirmed it is determined to challenge what it perceived as an unlawful expansion of SEC jurisdiction over its operations.
In another statement, the exchange emphasized its commitment to maintaining safety, security, and compliance since its funding in 2016. The exchange boasts an impressive portfolio of over 100 regulatory approvals across various jurisdictions, including Ireland, South Korea, and the Netherlands. Crypto.com also filed a petition with the Commodity Futures Trading Commission (CFTC) in a separate initiative.
A New Era for Crypto Policy
If Trump fulfills his promise, the United States will have its first presidential council focused on cryptocurrency.
Experts like Kristin Smith from the Blockchain Association believe it could happen quickly, changing how the government works with digital assets. Recall that Trump’s pro-crypto stance has boosted Bitcoin to record highs and reignited hopes for a $100,000 milestone.
His promises to ease banking restrictions and treat crypto as a strategic asset have supported him in the sector. However, consumer groups caution against letting the industry regulate itself, a concern that may influence the council’s structure and agenda.
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