The SEC ended its probe into Crypto.com without action, signaling potential regulatory easing as the exchange secures Dubai licensing and expands in South Korea.
The U.S. Securities and Exchange Commission has closed its investigation into Crypto.com without enforcement action, the latest in a series of regulatory wins for crypto firms.
Regulatory reprieve for Crypto.com
The U.S. Securities and Exchange Commission (SEC) officially closed its investigation into Crypto.com on June 18 without recommending enforcement action, according to a statement from CEO Kris Marszalek. The decision comes as the Singapore-based exchange reports serving over 100 million users worldwide.
This marks the third such closure of SEC crypto investigations in recent weeks, following similar decisions regarding Paxos on June 12 and Kraken on May 29. The moves suggest a potential shift in the SEC’s enforcement approach under Chair Gary Gensler, who has simultaneously pursued high-profile cases against Coinbase and Binance.
Global expansion continues
Concurrent with its regulatory victory, Crypto.com obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority on June 10. The license places the exchange alongside Binance and OKX as regulated operators in the Middle East’s growing crypto hub.
The company also announced expanded South Korean operations this week, adding Korean won (KRW) trading pairs after acquiring the OK-BIT license in 2022. These developments come amid surging institutional interest in digital assets, with Fidelity reporting 441% year-over-year growth in crypto custody assets to $4.9 billion.
Industry implications
Analysts see the SEC’s recent actions as reflecting a more pragmatic enforcement strategy. ‘The closed investigations suggest regulators are distinguishing between clear violations and areas needing clearer guidelines,’ said Martha Lopez of Greenwich Associates in an interview. She noted that 75% of Fortune 100 companies are now exploring blockchain projects according to Coinbase Institutional research.
The regulatory developments coincide with growing anticipation for the SEC’s decision on BlackRock’s proposed Ethereum ETF, expected imminently. Market observers suggest the recent string of favorable outcomes could signal a broader reassessment of crypto oversight approaches in a pre-election year.
