In a rare moment in cryptocurrency history, Crypto.com has voluntarily withdrawn its lawsuit against the U.S. Securities and Exchange Commission (SEC).
This decision came as a surprise to the cryptocurrency community, considering the history of constant battles between cryptocurrency companies and regulators, especially the SEC.
The cryptocurrency exchange’s lawsuit, filed last October, challenged the SEC’s authority and argued that the regulator exceeded its jurisdiction by classifying certain digital assets as “crypto asset securities.”
The timing of this decision is no coincidence. This follows a meeting between cryptocurrency exchange CEO Kris Marszalek and President-elect Donald Trump at Mar-a-Lago on December 16. The CEO even shared a photo of himself with the President. Take your pick from X, formerly known as Twitter.
Discussions during the meeting focused on the incoming administration’s government appointments related to the cryptocurrency industry and Trump’s proposed national Bitcoin reserves, the anonymous source said. bloomberg.
A Crypto.com spokesperson said the exchange is optimistic about cooperation with the Trump administration. “We look forward to working with the new administration to develop and advance clear regulations for the cryptocurrency industry so that the United States can become a global leader in digital assets and innovation,” they said.
The decision to drop the lawsuit suggests that Crypto.com believes it could be advantageous to work more closely with a new administration that has shown openness to supporting cryptocurrency innovation.
Trump’s recent pro-crypto appointments have only strengthened this resolve.
Key additions to the administration include Cantor Fitzgerald LP CEO Howard Lutnick as Secretary of Commerce, and Paul Atkins, a long-time advocate for balanced cryptocurrency regulation, to lead the SEC.
Venture capitalist David Sacks, a former PayPal executive and Bitcoin supporter, has also been appointed to advise on cryptocurrencies and artificial intelligence as the ‘White House AI and Cryptocurrency Czar’.
Crypto.com’s lawsuit was in response to a Wells notice issued by the SEC accusing the company of securities trading violations related to the sale of certain digital tokens.
The exchange sought judicial intervention to clarify regulatory boundaries and requested joint interpretation from the SEC and Commodity Futures Trading Commission (CFTC).
Crypto.com did not immediately respond. detoxification question.
Of particular interest are plans for a national Bitcoin reserve, a proposal said to have been discussed at the meeting. This has already attracted attention at the state level.
During his campaign, Trump promised to establish a strategic Bitcoin reserve as a safeguard for the country’s financial resilience.
Lawmakers in Ohio, Texas, and Pennsylvania have already introduced Bitcoin reserve bills, and other states, including Florida, are expected to follow suit.
Edited by Stacey Elliott.
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