Crypto.com has withdrawn its lawsuit against the U.S. Securities and Exchange Commission, which contested the agency’s jurisdiction over specific digital assets.

This decision comes after a meeting between Crypto.com CEO Kris Marszalek and President-elect Donald Trump at Mar-a-Lago on Dec. 16. The two discussed crypto-friendly policies, including Trump’s proposed national Bitcoin reserve.

The lawsuit, initiated in October 2024, sought to prevent the SEC from expanding its authority beyond statutory limits. 

Wells Notice response

Crypto.com filed the suit after receiving a Wells Notice from the SEC, indicating potential enforcement action for alleged securities violations. Marszalek responded by emphasizing the need for the SEC to respect court rulings and avoid overreach into the cryptocurrency sector.

The recent meeting with President-elect Trump appears to have influenced Crypto.com’s decision to drop the lawsuit.

Trump has expressed support for the cryptocurrency industry. His administration plans to appoint crypto-friendly individuals to key regulatory positions, including Paul Atkins as SEC chair, signaling a potential shift toward more favorable policies for digital assets.

In November, FTX filed a lawsuit to recover over $11 million from a Crypto.com account allegedly controlled by its sister company, Alameda Research.