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Crypto.com rescinds lawsuit against SEC after Donald Trump meeting
The meeting led to Crypto.com rescinding its lawsuit against the SEC, after the regulator issued a warning to the company, as the company appears to be striking a more conciliatory tone with the incoming Trump administration.
Trump announced a national bitcoin stockpile and stated that 'we will have regulations, but from now on the rules will be written by people who love your industry, not hate your industry', indicating a more favorable approach to cryptocurrency regulation.
Crypto.com accused the SEC of 'aggressively weaponizing' rules against the digital asset industry and arbitrarily classifying certain tokens as securities, overstepping its legal authority and violating federal laws governing how agencies should establish new regulations.
Yes, in 2019, Trump expressed a more skeptical view on crypto, stating that bitcoin's 'value [was] highly volatile and based on thin air', but has since changed his stance to a more favorable one, as evident from his recent statements and plans for cryptocurrency regulation.
Gary Gensler, the current chair of the SEC, intends to resign the day Trump enters office in January, and is expected to be replaced by Paul Atkins, a pro-crypto figure.
A recent meeting between President-Elect Donald Trump and Crypto.com CEO Kris Marszalek has led the crypto exchange to rescind an October lawsuit leveled against the U.S. Securities and Exchange Commission (SEC), after the regulator issued a warning to the company, according to Decrypt .
Originally, the lawsuit sought to stop the SEC from “unlawfully expanding its jurisdiction” by going after crypto companies it alleged were not following the law.
In its lawsuit, Crypto.com accused the SEC of "aggressively weaponizing" rules against the digital asset industry. The company claimed the agency arbitrarily classified certain tokens as securities falling under its jurisdiction, overstepping its legal authority and violating federal laws governing how agencies should establish new regulations.
The litigation named Gary Gensler, the current chair of the SEC, who intends to resign the day Trump enters office in January, along with other SEC commissioners, for their roles in the regulation-by-enforcement campaign.
Now, with Gensler voluntarily exiting the agency, and soon to be replaced by the pro-crypto figure Paul Atkins, Crypto.com appears to be striking a more conciliatory tone.
The meeting between Marszalek and Trump earlier this month allegedly discussed key appointments that would shape crypto policy under an incoming Trump administration, as well as Trump's plan for a national bitcoin stockpile.
Trump first announced a national bitcoin stockpile at the Bitcoin Conference in Nashville earlier this year. “We will have regulations, but from now on the rules will be written by people who love your industry, not hate your industry,” he said. "The strategic national bitcoin stockpile. As you know, as you know, most of the bitcoin currently held by the United States government was obtained through law enforcement action. You know that. They took it from you."
In 2019, Trump espoused a more skeptical view on crypto, stating that bitcoin's “value [was] highly volatile and based on thin air.”