Cronos (CRO) Surges 11% After SEC Closes Crypto.com Investigation

Cronos (CRO) has seen a significant uptick of nearly 11% over the past 24 hours, as it briefly surged above $0.11 on March 28th. While it has currently stabilized at around $0.10, the latest price action has pushed its weekly gains to nearly 40%.

This rise in CRO’s value comes on the heels of a major development involving Crypto.com, the parent company behind the cryptocurrency.

SEC Ends Probe into Crypto.com

The US Securities and Exchange Commission (SEC) officially closed its investigation into the crypto exchange and has informed the company that no enforcement action would be taken against it.

This marks a major moment after months of tension between the two entities. In October 2024, Crypto.com filed a lawsuit against the SEC after receiving a Wells notice, which indicated the regulator’s intent to sue the platform for operating as an unregistered broker-dealer and securities clearing agency.

The lawsuit argued that the SEC had unlawfully extended its jurisdiction and imposed an overreaching rule classifying nearly all crypto transactions as securities trades, regardless of how they were sold. Crypto.com CEO Kris Marszalek publicly condemned the regulator’s actions and called for an end to its overreach.

However, by December 2024, Crypto.com dropped its lawsuit, a month after the re-election of Donald Trump as US President. The SEC, under the Biden administration, had previously targeted various cryptocurrency companies, including Kraken, Coinbase, and Uniswap, with enforcement actions and lawsuits. However, after Trump returned to office, the legal landscape for crypto companies shifted dramatically, with many cases being shut down.

Following the development, Nick Lundgren, Chief Legal Officer of Crypto.com, accused the SEC of weaponizing and attempting to expand its congressionally granted power to harm an industry that its former chair “disfavored.” The exec even went on to add,

“It is unfortunate that we were forced to endure this years-long investigation and file our own suit against the SEC to protect the rule of law. Compliance and integrity are core to Crypto.com’s business and we are excited to work with soon-to-be-confirmed Chair Atkins and the rest of the Commission on our long-awaited desire for legislation and rulemaking.”

Backlash Over Re-Issuance of 70 Billion CRO Tokens

Crypto.com was recently under fire for the re-issuance of 70 billion CRO tokens, which sparked fierce criticism from the crypto community. For instance, ZachXBT, a prominent blockchain investigator, accused the company of betraying its users, and claimed the move was no different from a scam. This controversial decision resurrected tokens that had been burned in 2021 to decrease the total supply.

Critics argue that it goes against the community’s wishes for decentralization and transparency, with reports indicating that Crypto.com’s validators control a large portion of the voting power. Despite this, Marszalek defended the decision, stating that it was necessary to support the company’s growth strategy.