Crypto News Update: SEC Closes Crypto.com Investigation, Senate Grills SEC Nominee, and EU Banks Lag in Crypto Services

SEC Ends Crypto.com Investigation Without Action

In a significant development for the cryptocurrency market, the United States Securities and Exchange Commission (SEC) has officially closed its investigation into leading crypto exchange Crypto.com. The announcement was made public by Crypto.com’s CEO, Kris Marszalek, who confirmed that the regulatory probe has concluded with no enforcement action against the platform.

Marszalek shared the news on social media platform X (formerly Twitter) on March 27, stating, “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.”

This closure brings relief not just to Crypto.com but also to the broader crypto community, which has been under increasing regulatory scrutiny in the United States. Alongside Crypto.com, the SEC also dismissed its civil enforcement action against another crypto trading firm, Cumberland DRW, with prejudice on the same day, signaling a possible shift in regulatory focus.

The closure of this high-profile investigation is being seen as a positive sign for crypto investors and businesses, as it reduces immediate legal uncertainty around one of the largest crypto exchanges in the market.

SEC Nominee Paul Atkins Faces Tough Senate Hearing Over Crypto Ties

While the SEC closed one chapter, another regulatory discussion unfolded on Capitol Hill. On March 27, the US Senate Banking Committee held a confirmation hearing for Paul Atkins, a nominee for the Securities and Exchange Commission.

Atkins, a former SEC commissioner who served from 2002 to 2008, faced intense questioning from lawmakers, particularly regarding his connections to the crypto industry and potential conflicts of interest. Senator Elizabeth Warren of Massachusetts raised concerns about Atkins’ past consultancy work through Patomak Global Partners, a firm that previously advised the now-bankrupt crypto exchange FTX.

Sen. Warren criticized Atkins’ judgment during his earlier tenure at the SEC, calling it “staggeringly bad” and questioned his ability to regulate the crypto market impartially if confirmed. She further pressed him to reveal the potential buyers of his consulting firm, implying that such a sale could influence his decisions at the SEC.

Warren stated, “Your clients pay you over $1,200 an hour to advise on how to influence regulators like the SEC. If confirmed, you will be in a prime spot to deliver for those clients who’ve paid you millions.”

Atkins responded by saying he would “abide by the process” but avoided directly answering the transparency questions related to Patomak’s sale. This exchange highlighted the growing concern in Washington about the crypto industry’s influence on regulators and the need for clear ethical boundaries.

Survey Reveals Most European Banks Fail to Offer Crypto Services

In Europe, a new survey revealed a significant gap between investor demand for cryptocurrency products and the services offered by traditional financial institutions. According to research conducted by crypto investment platform Bitpanda, fewer than 1 in 5 European banks currently provide crypto-related services.

The survey, which included responses from 10,000 retail and business investors across 13 European countries, uncovered that more than 40% of business investors already hold cryptocurrencies, and an additional 18% plan to invest soon.

However, despite this clear interest from investors, only 19% of surveyed banks and financial institutions acknowledged strong demand for crypto products from their clients. This indicates a 30% gap between actual crypto adoption and the perception of demand by banks.

The findings suggest that European banks may be missing out on a growing market opportunity, as many investors continue to seek diversified portfolios that include digital assets. The survey also underscores the broader need for banks to adapt to the evolving financial landscape shaped by crypto innovation and investor interest.

Final Thoughts

This week’s developments reflect the global regulatory challenges and shifting attitudes toward cryptocurrency. While the SEC’s closure of its investigation into Crypto.com provides relief to the crypto community, the grilling of SEC nominee Paul Atkins illustrates the US government’s caution regarding industry ties. Meanwhile, European banks’ hesitancy to embrace crypto services highlights a clear gap between market demand and financial institution offerings.

As the crypto space continues to mature, regulatory clarity and institutional adoption will remain key themes driving the future of digital assets.