FUD Alert: Crypto.Com Potentially Next in Line for Regulatory Scrutiny, Following Bittrex U.S. 

U.S. financial regulators, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have been increasingly focusing on the digital asset industry, raising concerns over regulatory clarity.

Singapore-based Crypto.com may be the latest digital asset exchange to face potential investigation and possibly wind up its U.S. operations. Is it true or a FUD?

James Deaton on Crypto.com

Attorney James Deaton, who serves as Amicus Curiae in the ongoing SEC vs Ripple lawsuit, attempted to clarify the situation regarding Crypto.com‘s alleged winding up. Deaton emphasized that the industry is mistaken if it believes Coinbase was the only exchange to receive a Wells Notice from the regulatory watchdogs. He hinted that other exchanges, including Crypto.com, could also face similar warnings.

Is This Information Verified?

Prominent Twitter account Whalechart, with over 290k followers, initially tweeted that crypto exchange #CryptoCom is under investigation by U.S. government agencies and may collapse or cease operations in the U.S. This tweet was subsequently shared by several accounts, including John Deaton, amplifying the potential misinformation. In response, Kris Marszalek, CEO of Crypto.com, debunked the claims, stating that the information was false and urged people to report ‘Whalechart’ for spreading misinformation.

U.S. Risks Losing Crypto Firms Due to Lack of Clarity

The regulatory overreach by the SEC and CFTC has been criticized by crypto industry leaders, who argue that the United States may lose several crypto firms due to the lack of regulatory clarity. As Bittrex U.S. prepares to wind up its operations, it remains to be seen how the regulatory landscape will evolve and what impact this will have on the broader crypto industry.

Also Read: Here’s Why Policymakers Have Been Reluctant To Regulate Cryptocurrency