SEC Drops Coinbase Lawsuit: Crypto Tokens, Robinhood Stock Soar

The U.S. Securities and Exchange Commission (SEC) is poised to drop its lawsuit against Coinbase, a significant development that could boost sentiment for crypto tokens previously considered securities and positively impact Robinhood's stock, a major player in the crypto exchange space.

The SEC's likely decision could be a big win for the crypto industry, which has faced strict enforcement under President Biden. In June 2023, Robinhood had to remove tokens accused of being securities, but after Donald Trump's election victory, the exchange added back some tokens, including Solana's SOL.

With the Coinbase case likely to be dropped, exchanges like Robinhood may feel more confident adding tokens to their platforms, which could boost trading revenue. Besides, Robinhood recently reported a 115% increase in fourth-quarter revenue, driven by higher crypto trading earnings.

The top five tokens, based on market cap, that were previously considered securities include BNB, Solana (SOL), Cardano (ADA), Tron (TRX), and Toncoin (TON). This development could also inspire more companies to go public in U.S. markets. Several crypto firms, such as Blockchain.com, BitGo, Gemini, eToro, Bullish Global, Ripple, and Circle, are already rumored to be eyeing potential initial public offerings (IPOs) in the U.S.

Coinbase (COIN) saw a 5% increase in shares ahead of Friday's market open, following the news. The overall crypto market also rose, with Bitcoin (BTC) nearing $100,000 for the first time since early February. Tokens previously labeled as securities by the SEC under Gary Gensler's leadership also gained, as market sentiment improved.