Coinbase & Robinhood Surge as SEC Poised to Drop Lawsuit – Bitcoin Eyes $100K
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The SEC’s latest move towards dropping its lawsuit against Coinbase could not only boost sentiment for crypto tokens once considered securities under the previous administration but also positively impact Robinhood’s (HOOD) stock, a major player in the crypto exchange space.
While the SEC hasn’t yet voted on the Coinbase case, its 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.
Exchanges Could Add More Tokens, Crypto Firms Could Consider U.S. IPOs
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.
COIN Surges 5%, HOOD Rises 4%, BTC Nears $100K
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.
