Cronos (CRO), the native token of Crypto.com, has surged by nearly 11% over the past 24 hours, briefly crossing the $0.11 mark before stabilizing around $0.10. This price increase has contributed to a nearly 40% gain for the token over the past week. The boost in CRO’s price comes after significant news surrounding its parent company, Crypto.com, and its recent legal developments with the US Securities and Exchange Commission (SEC).

SEC Closes Investigation into Crypto.com

The major catalyst behind CRO’s price surge is the closure of the SEC’s investigation into Crypto.com. The SEC informed Crypto.com that no enforcement action would be taken against the company, marking the end of a months-long legal battle. This investigation began in October 2024 when Crypto.com received a Wells notice, indicating the SEC’s intent to sue the exchange for allegedly operating as an unregistered broker-dealer and securities clearing agency. The SEC’s stance was that Crypto.com’s operations were in violation of securities laws.

In response, Crypto.com filed a lawsuit against the SEC, arguing that the regulator had overstepped its jurisdiction and was attempting to extend its authority to crypto transactions. The lawsuit argued that the SEC’s classification of nearly all cryptocurrency transactions as securities trades was an overreach. Crypto.com CEO Kris Marszalek condemned the SEC’s actions and called for a more reasonable approach to regulation.

The legal battle culminated in December 2024 when Crypto.com dropped its lawsuit. This followed the re-election of Donald Trump as US President, which led to a shift in the regulatory landscape. Under Trump’s leadership, the SEC under Chairman Gary Gensler had targeted various crypto firms, including Kraken and Coinbase, with lawsuits and enforcement actions. However, following Trump’s re-election, many of these cases were dismissed, signaling a change in regulatory priorities.

Nick Lundgren, Crypto.com’s Chief Legal Officer, voiced frustration over the years-long investigation, accusing the SEC of abusing its power to harm the crypto industry. He emphasized that Crypto.com was committed to compliance and that the company was eager to work with the SEC’s new leadership to develop clearer regulations for the crypto sector.

Controversy Over Re-Issuance of 70 Billion CRO Tokens

In addition to the legal news, Crypto.com has recently faced backlash over its decision to re-issue 70 billion CRO tokens that had been burned in 2021 to reduce the overall supply. Critics, including prominent blockchain investigator ZachXBT, have accused Crypto.com of betraying its users by resurrecting these tokens. Some community members argue that this move undermines decentralization and transparency, core principles of the crypto space.

Despite the criticism, CEO Kris Marszalek defended the decision, explaining that it was a necessary step to support the company’s long-term growth strategy. He argued that the re-issuance of the tokens would help Crypto.com strengthen its market position and increase its influence in the blockchain space.

CRO’s Market Outlook

The closure of the SEC’s investigation has provided much-needed clarity for Crypto.com and its users. This legal resolution has alleviated some of the uncertainty surrounding the exchange, helping to drive CRO’s price up. However, the re-issuance of 70 billion CRO tokens remains a contentious issue. Many in the crypto community are concerned that such actions may negatively impact the token’s long-term value and undermine the trust of its users.

As Crypto.com continues to navigate both regulatory challenges and internal controversies, the future of Cronos (CRO) will largely depend on how well the company can manage these issues. The company’s legal victory with the SEC, combined with its growth strategies, has provided a positive outlook for CRO in the short term, but the crypto market remains volatile, and its long-term prospects will depend on how Crypto.com addresses the concerns of its community and regulators.