Major cryptocurrency exchange Crypto.com withdrew its lawsuit against the United States Securities and Exchange Commission (SEC) following a meeting between its CEO and President-elect Donald Trump.
An insider cited by Bloomberg revealed that Crypto.com CEO Kris Marszalek and Trump discussed government appointments related to the crypto industry and Trump’s plans for a Bitcoin (BTC) reserve. A Crypto.com spokesperson told Bloomberg that the company intends to advise the future president on matters relating to the crypto industry:
“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. […] We withdrew our action against the SEC given our intent to work with the incoming administration on a regulatory framework for the industry.”
The details
Crypto.com decided to sue the United States regulator in October after being served a Wells Notice. This kind of notice is issued by the SEC when it concludes an investigation.
In its investigation, Crypto.com accused the regulator of having expanded its jurisdiction over digital assets beyond the authority assigned to the body. A similar sentiment was shared by the republican state attorney generals and the DeFi Education Fund when they jointly sued the SEC and its five commissioners. That lawsuit read:
“The SEC’s sweeping assertion of regulatory jurisdiction is untenable. The digital assets implicated here are just that — assets, not investment contracts covered by federal securities laws.”
Bitcoin’s price failed to react positively to the amicable relationship between the United States regulator that are expected from the next presidency. At the time of writing, Bitcoin is trading at just over $104,000 after losing 2.75% over the last 24 hours.
The Crypto Fear & Greed Index, a multifactorial measure of crypto market sentiment, currently indicates a level described as “extreme greed.” The index stands at 81, indicating that the crypto market is now overrun by greed. With such scores, the instrument warns of a possible imminent correction:
“When Investors are getting too greedy, that means the market is due for a correction.”
