SEC Dropping Coinbase (COIN) Case Could Boost Robinhood (HOOD) Stock, Tokens Alleged as Securities

The Securities and Exchange Commission (SEC) doubtlessly dropping its Coinbase lawsuit might assist enhance sentiment for not solely crypto tokens that have been alleged as securities below the final presidential administration but additionally standard alternate Robinhood’s (HOOD) shares.

Read extra: SEC Poised to Drop Coinbase Lawsuit, Marking Big Moment for U.S. Crypto

While the SEC hasn’t formally voted on the Coinbase case, it’ll seemingly be welcomed by the business that has confronted enforcement by the company below the Joe Biden administration. Robinhood was one of many exchanges that needed to delist the entire tokens that have been alleged to be securities in June 2023. However, after Donald Trump gained the U.S. presidential election final yr, the alternate added again a few of these tokens, together with Solana’s SOL, which the SEC alleged have been securities.

With the Coinbase case set to be dropped, exchanges such as Robinhood really feel much less danger in including extra tokens to their platform, doubtlessly rising buying and selling income. Most lately, the favored crypto platform mentioned its fourth-quarter income rose 115% from the earlier yr, topping Wall Street’s estimates, primarily boosted by an increase in crypto buying and selling income.

According to Cryptorank.io, the high 5 tokens, based mostly on market cap, that have been alleged securities embody BNB, Solana (SOL), Cardano (ADA), Tron (TRX) and Toncoin (TON).

The transfer may also encourage extra firms to checklist their companies publicly within the U.S. markets. Several crypto firms are already rumored to be contemplating preliminary public choices (IPOs) within the U.S., together with Blockchain.com, BitGo, Gemini, EToro, Bullish Global (CoinDesk’s guardian firm), Ripple and Circle.