In a rare moment in crypto history, Crypto.com has voluntarily withdrawn its lawsuit against the U.S. Securities and Exchange Commission (SEC).
Considering the history of constant tussles between crypto firms and regulators—particularly the SEC—the decision came as a surprise to the crypto community.
Filed in October, the crypto exchange’s lawsuit challenged the SEC’s authority and alleged the regulator overstepped its jurisdiction by labeling certain digital assets as “crypto asset securities.”
The timing of this decision is no coincidence—it follows a meeting between the crypto exchange’s CEO, Kris Marszalek, and President-elect Donald Trump at Mar-a-Lago on December 16. The CEO even shared a picture he took with the President-elect on X, formerly known as Twitter.
Honored to have a seat at the table. pic.twitter.com/KvK0XyEdYZ
— Kris | Crypto.com (@kris) December 17, 2024
Discussions during the meeting focused on government appointments in the incoming administration relevant to the crypto industry and Trump’s proposed national Bitcoin reserve, an unnamed source told Bloomberg.
A Crypto.com spokesperson told the outlet the exchange is optimism about collaborating with the Trump administration. “We look forward to working with the new administration to develop and advance clear regulations for the crypto industry so the US can become a global leader in digital assets and innovation,” they said.
The decision to drop the lawsuit suggests that Crypto.com thinks it could be in its favor to work more closely with the new administration, which has shown an openness to supporting crypto innovation.
Trump’s recent pro-crypto appointments have only strengthened this resolve.
Key figures joining the administration include Howard Lutnick, CEO of Cantor Fitzgerald LP, as Commerce Secretary, and Paul Atkins, a longtime advocate for balanced crypto regulations, to head the SEC.
Venture capitalist David Sacks, a former PayPal executive, and Bitcoin supporter, has also been tapped to advise on crypto and artificial intelligence as the ‘White House A.I. & Crypto Czar.’
Crypto.com’s lawsuit was a response to an SEC-issued Wells Notice accusing the exchange of securities violations tied to the sale of certain digital tokens.
The exchange sought judicial intervention to clarify regulatory boundaries and petitioned for a joint interpretation from the SEC and the Commodity Futures Trading Commission (CFTC).
Crypto.com did not immediately respond to Decrypt’s questions.
Of particular interest is the plan for a national Bitcoin reserve, a proposal said to have been discussed during the meeting. It’s already gained traction at the state level.
During his campaign, Trump promised to create a strategic Bitcoin stockpile, framing it as a safeguard for national financial resilience.
Lawmakers in Ohio, Texas, and Pennsylvania have already introduced Bitcoin reserve bills, and other states, including Florida, are expected to follow.
Edited by Stacy Elliott.