Crypto Today: SEC Closes Crypto.com Investigation, European Banks Struggle with Crypto Demand

SEC Officially Closes Crypto.com Investigation

In a significant development for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Crypto.com, the global cryptocurrency exchange, with no enforcement action taken against the platform. Kris Marszalek, CEO of Crypto.com, confirmed the closure in a post on X (formerly Twitter) on March 27, 2025.

Marszalek expressed relief and frustration in the same breath, highlighting that the SEC had utilized every possible tool to restrict access to various services, including banking, auditors, and investors, in what he described as a calculated attempt to stifle the industry. The investigation’s closure marks a win for Crypto.com, clearing the company of any wrongdoing and reaffirming its commitment to compliance.

In related news, the SEC also dismissed a civil enforcement action against Cumberland DRW, a crypto trading firm, with prejudice on the same day. This dismissal further signals the regulatory body’s shift in focus, at least for now, as it resolves some high-profile cases.

“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,” said Marszalek.

SEC Nominee Paul Atkins Faces Senate Scrutiny

Meanwhile, Paul Atkins, the SEC nominee, faced intense questioning from the U.S. Senate Banking Committee on March 27, with several lawmakers raising concerns about his ties to the crypto industry and potential conflicts of interest. Senator Elizabeth Warren of Massachusetts, the committee’s ranking member, pressed Atkins on his role with Patomak Global Partners, a consulting firm that had advised FTX before its collapse in 2022.

Senator Warren criticized Atkins for what she described as “staggeringly bad judgment” during his tenure at the SEC from 2002 to 2008, citing his role leading up to the 2008 financial crisis. Warren also asked Atkins to disclose the buyers of his consulting firm, Patomak, to ensure transparency regarding any conflicts of interest he might have, given his potential future position as SEC chair.

Atkins, in his defense, stated that he would adhere to the confirmation process but did not directly respond to Warren’s request. The questioning raised concerns about whether Atkins could effectively regulate digital assets without being influenced by his past associations with firms in the crypto industry.

"Your clients pay you north of $1,200 an hour for advice on how to influence regulators like the SEC, and if you're confirmed, you will be in a prime spot to deliver for all those clients who’ve been paying you millions of dollars for years,” Senator Warren told Atkins.

Atkins’ confirmation hearing is an important step in shaping the future of crypto regulation in the U.S., with much of the industry’s attention focused on how he might address growing digital asset regulations.

European Banks Struggle to Meet Crypto Demand

In Europe, a new survey has revealed a significant gap between crypto investor demand and the services offered by European financial institutions. According to a study by Bitpanda, a leading crypto investment platform, fewer than one in five European banks currently offer digital asset services, despite rising demand from investors.

The survey, which polled 10,000 retail and business investors across 13 European countries, found that 40% of business investors already hold cryptocurrencies, with another 18% planning to invest in the near future. Yet, only 19% of European financial institutions reported that their clients showed strong demand for crypto services, highlighting a disconnect between investor interest and financial institutions' offerings.

Moreover, the survey showed that while 80% of financial institutions acknowledge the growing importance of crypto, only 19% are currently offering crypto services. However, 18% of surveyed institutions plan to expand their offerings, particularly in the area of crypto transfers. This signals a potential shift in the way European banks may approach cryptocurrency services in the coming years.

The survey results underline the increasing demand for crypto services, but also reveal the hesitation of many European banks in fully embracing the shift towards digital assets.

“The data underscores a growing mismatch between consumer demand and bank offerings,” Bitpanda noted. “As more investors turn to crypto, financial institutions will need to adapt to this changing landscape.”

What’s Next for Crypto Regulation and Banking?

The SEC's closure of its investigation into Crypto.com is a positive sign for the crypto industry, signaling that regulatory pressures may be easing for some exchanges. However, the Senate's scrutiny of SEC nominee Paul Atkins shows that the future of crypto regulation in the U.S. remains uncertain, with regulators likely to face increased pressure to balance consumer protection with industry growth.

At the same time, European financial institutions must adapt quickly to meet the growing demand for crypto services. As more businesses and consumers invest in digital assets, the gap between investor expectations and bank offerings may become harder to ignore.

With the crypto industry continuing to evolve, both in terms of regulation and service offerings, it remains to be seen how lawmakers, regulators, and financial institutions will address the shifting landscape.

For more updates on these developments, you can follow Paul Atkins on X or visit Crypto.com’s official news section.