Welcome to the Friday edition of the Crypto In America newsletter!
We're wrapping up the week with news that the Securities and Exchange Commission has terminated yet another investigation into a crypto company.
Wall Street’s top cop has officially closed an investigation into digital asset exchange Crypto.com without filing an enforcement action.
The move comes as the Securities and Exchange Commission, under Acting Chair Mark Uyeda, has been rapidly rolling back investigations and enforcement actions initiated under former Chair Gary Gensler. This shift is part of a new approach by the Trump administration that de-emphasizes enforcement in favor of providing greater regulatory clarity.
Eleanor Terrett was the first to report the news via X Thursday evening.
Crypto.com, a global exchange operating in the U.S., was targeted by the SEC last year when the Gensler-led enforcement division issued a Wells notice to the company, signaling it was considering bringing charges for alleged securities violations.
In response, Crypto.com filed a preemptive lawsuit against the SEC, challenging what it said was the agency’s jurisdictional overreach over digital assets. The firm voluntarily withdrew the suit after President Trump's election, during which he vowed to end the previous administration's so-called 'war on crypto' and prioritize establishing a regulatory framework for digital assets.
“I continue to be proud of how this industry and its community have weathered storm after storm, with the most prolific being the previous U.S. Administration's war on crypto,” Crypto.com CEO Kris Marszalek said in a tweet Thursday evening. “They used every tool available to attempt to stifle us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to put an end to the industry.”
Marszalek has developed a relationship with the pro-crypto president, which began when the two met to discuss the future of crypto at Trump’s Mar-a-Lago estate in December.
Earlier this week, Marszalek announced that Crypto.com had formed a partnership with Trump Media, the parent company of the social media platform Truth Social, to launch a series of exchange-traded products (ETPs) featuring cryptocurrencies with a 'Made in America' focus, including the native token of the exchange’s Cronos blockchain platform.
Sei Foundation Floats Acquisition of Bankrupt Genomics Platform 23andMe
The foundation behind the Sei Network, a blockchain designed to optimize decentralized finance (DeFi) applications, is exploring the possibility of acquiring 23andMe, the DNA testing company that recently announced plans to file for bankruptcy.
The news of the bankruptcy has sparked anxiety among millions of 23andMe users, whose sensitive DNA data is now set to be sold as part of the Chapter 11 proceedings.
The Sei Foundation believes it can help secure that data and maintain user privacy by placing it on the blockchain, a decentralized ledger that ensures privacy through encryption. According to an X post from Sei, this move would allow users to regain ownership of their genetic data, decide how it's monetized, and share in the revenue.
If Sei is successful in its bid, it would mark one of the most significant M&A moves in the so-called decentralized science (DeSci) space, which leverages blockchain technology to transform how scientific research, data, and funding are managed and distributed.
“This isn’t just about saving a company, it’s about building a future where your most personal data remains yours to control,” Sei’s post read.
Disclaimer: The Crypto In America podcast and newsletter is powered by Sei Network.
Weekly Recap
Here are some of the biggest news stories this week from the intersection of Washington and Web3:
SEC Chair nominee Paul Atkins faced the Senate Banking Committee but received relatively few questions from members relating to his plans for how to regulate the crypto industry. In prepared remarks, Atkins said a top priority of his chairmanship is to provide a “firm regulatory foundation for digital assets through a rational, coherent and principled approach.”
Ripple General Counsel Stuart Alderoty announced the company’s intention to drop its appeal against the SEC, which had been filed in response to the agency appealing a district court ruling that the XRP token, when sold by Ripple in the secondary market, does not constitute a securities transaction. Alderoty added that Ripple has reached an agreement with the SEC to pay only $50 million of an originally ordered $125 million fine, and the SEC will request the lifting of an ongoing injunction imposed on Ripple by a Manhattan District court.
The Senate passed a joint resolution to overturn an IRS rule that would have required DeFi software developers to comply with tax reporting procedures. The 'DeFi Broker Rule' passed with a vote of 70-28 on Wednesday and is set to move to President Trump’s desk for approval. Trump could sign the resolution as early as today.
The full text of the House of Representatives’ version of legislation aimed at providing a regulatory framework for stablecoins was released Wednesday afternoon, with twelve bipartisan cosponsors. The text of the STABLE Act builds on the discussion draft introduced last month by House Financial Services Committee Chairman French Hill (R-AR) and digital assets subcommittee chair Bryan Steil (R-WI). The STABLE Act is the House’s version of the GENIUS Act, the Senate’s stablecoin bill that passed out of the Banking Committee earlier this month.
The SEC Crypto Task Force has announced dates for four additional industry roundtables to discuss digital asset regulation. The sessions will cover topics including crypto trading, custody, tokenization, and DeFi. Dates for the roundtables, which are open to the public and will be live-streamed, can be found here.
The SEC has formally dismissed litigation proceedings against U.S. crypto exchange Kraken, blockchain software company ConsenSys, and crypto trading firm Cumberland DRW. All three companies had previously announced that they reached agreements with the agency to dismiss their cases.
The Federal Deposit Insurance Corporation plans to remove 'reputational risk' from its criteria for supervising U.S. banks. This follows a similar move by the Office of the Comptroller of the Currency, which eliminated the factor that lawmakers say was used to justify the debanking of lawful businesses, including crypto.
Remember, new editions of the Crypto In America newsletter drop every Monday, Wednesday and Friday at 7AM EST.
If you like what you’re reading, don’t forget to subscribe!
Excellent newsletter once again! Love the week’s summary!