SEC Dropping Coinbase Case Could Fuel Crypto Growth, Boost Robinhood Stock
The potential dismissal of the Securities and Exchange Commission (SEC) lawsuit against Coinbase could have widespread implications for the crypto industry, benefiting both digital tokens previously alleged as securities and publicly traded exchanges like Robinhood (HOOD).
Regulatory Shift Could Revive Token Listings
The SEC has yet to officially vote on ending its legal battle with Coinbase, but if the case is dropped, it would mark a major shift for an industry that faced strict regulatory enforcement under the Biden administration. Robinhood, for example, was forced to delist several tokens in June 2023 due to SEC scrutiny. However, following Donald Trump’s election victory last year, the exchange reinstated some of these assets, including Solana (SOL), which regulators had classified as a security.
With the legal threat easing, exchanges like Robinhood could feel more confident in relisting additional tokens, leading to higher trading activity and revenue. Robinhood recently reported a 115% year-over-year surge in fourth-quarter revenue, beating Wall Street estimates largely due to an increase in crypto trading.
More Crypto IPOs Could Be on the Horizon
The top five tokens previously classified as securities by the SEC include Binance Coin (BNB), Solana (SOL), Cardano (ADA), Tron (TRX), and Toncoin (TON), according to Cryptorank.io. If the SEC backs down on its regulatory stance, it could also open the door for more crypto firms to go public in the U.S.
Several major players—such as Blockchain.com, BitGo, Gemini, eToro, Bullish Global (CoinDesk’s parent company), Ripple, and Circle—are reportedly exploring initial public offerings (IPOs). A friendlier regulatory environment could accelerate these plans, boosting institutional confidence in the crypto market.
