Crypto.com Drops SEC Lawsuit As CEO Meets With Trump

On Dec. 16, Crypto.com, a centralized cryptocurrency exchange, voluntarily withdrew its lawsuit against the U.S. Securities and Exchange Commission (SEC). On the same day, Kris Marszalek, Crypto.com’s CEO, met with President-elect Donald Trump at his Mar-a-Lago resort.

Bloomberg cited an anonymous source “familiar with the meeting” who said Trump and Marszalek discussed government appointments pertaining to the digital asset industry and Trump’s plans for a national strategic Bitcoin reserve.

A Crypto.com spokesperson told Bloomberg that the firm plans to help advise the Trump team on cryptocurrency regulations, which informed the company’s decision to drop its lawsuit against the SEC.

“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,” the spokesperson said. “We withdrew our action against the SEC given our intent to work with the incoming administration on a regulatory framework for the industry.”

Crypto.com sued the SEC in October after receiving a Wells Notice from the regulator. The SEC issues Wells Notices when it concludes an investigation into potential securities law violations.

Crypto.com accused the SEC of unilaterally expanding its jurisdiction over digital assets beyond its statutory limit, echoing complaints from other crypto projects, the U.S. Commodity Futures Trading Commission (CFTC), and Republican lawmakers.

Bitcoin reserve momentum

The discussion between Trump and Marszalek comes as hopes for a U.S. strategic Bitcoin reserve are growing.

On Dec. 12, CNBC asked Trump whether he plans to establish a national Bitcoin reserve. “Yes, I think so,” Trump replied. Trump also pledged to create a “strategic national Bitcoin reserve” while campaigning in July.

On Dec. 17, Bitcoin Magazine reported that the Bitcoin Policy Institute had drafted an executive order designating Bitcoin as a strategic reserve asset for Trump. “Bitcoin is a decentralized and finite store-of-value asset, akin to digital gold, with unique attributes that can bolster the resilience of the U.S. dollar and support American economic interests,” the draft document said.

An increasing number of U.S. lawmakers are similarly pushing for the establishment of state Bitcoin reserves.

On Dec. 17, Derek Merrin, the leader of the Ohio House Republicans, introduced a bill to create an Ohio Bitcoin Reserve within the state treasury. “As the US dollar undergoes devaluation, Bitcoin provides a vehicle to supplement our state's portfolio and preserve public funds from losing volume,” Merrin said.

Last week, lawmakers in Texas and Alabama introduced bills similarly calling for the creation of state Bitcoin reserves, following a similar move in Pennsylvania last month. The state pension funds in Michigan and Wisconsin invested in digital assets during 2024, with Florida planning on doing the same next year.

Lawmakers in other nations including Japan, Russia, and Argentina are also advocating for creating national Bitcoin reserves.

On Dec. 16, Sarah Knafo, a French magistrate and member of the European Parliament, called on the European Union to establish a Bitcoin reserve.

“No to the digital euro, yes to a strategic Bitcoin reserve,” Knafo said. “It is time to protect our people from inflation and the poor economic choices of our states.”