SEC Drops Coinbase, ConsenSys Lawsuits; Memecoins Not Securities; Uniswap Expands Crypto-Fiat Transfers

The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuits against both Nasdaq-listed cryptocurrency exchange Coinbase and Consensys, the firm behind the popular MetaMask wallet. The SEC has also distanced itself from the memecoin sector, stating that these tokens are more like collectibles than securities. Additionally, major decentralized exchange Uniswap has partnered with trading platform Robinhood and payment processors Transak and MoonPay to streamline crypto-to-fiat transactions for users in more than 180 countries.

The SEC's decision to drop its lawsuits against Coinbase and Consensys comes after a vote by commissioners and a request to a federal judge to dismiss the cases. While the regulator won't be able to change its mind later, it still has pending legal matters with Coinbase, including the exchange's petition to force the regulator to establish crypto rules and its search for internal documents. The SEC has also dropped investigations into several crypto projects, including OpenSea and Uniswap Labs.

The SEC has effectively distanced itself from the memecoin sector, stating that these tokens are more like collectibles than securities. In a staff statement from the SEC's corporate financial division, the regulator defined memecoins as a "type of crypto asset inspired by internet memes, characters, current events or trends for which the promoter seeks to attract an enthusiastic online community to purchase the memecoin and engage in its trading." The statement noted that memecoins have "limited or no use or functionality," which means they do not meet the definition of a security under the Howey Test and are therefore outside the SEC's jurisdiction.

Major decentralized exchange Uniswap has partnered with trading platform Robinhood and payment processors Transak and MoonPay to streamline crypto-to-fiat transactions for users in more than 180 countries. The partnership allows users in these countries to convert supported cryptocurrencies into fiat currency and deposit the funds directly into their bank accounts. The service is now available on the Uniswap wallet on both Android and iOS devices, and is set to soon launch on the Uniswap extension and web application. The launch comes just days after the SEC dropped its investigation into Uniswap Labs.