SEC Walking Away from Coinbase Lawsuit Could Spark Robinhood Rally, Security Token Issues Remain

SEC Dropping Coinbase Lawsuit Could Spark Robinhood Rally, Open Doors for Crypto IPOs

If the U.S. Securities and Exchange Commission (SEC) decides to drop its case against Coinbase, it could remove a major overhang for the crypto industry, boosting sentiment for exchanges like Robinhood (HOOD) and paving the way for more digital asset firms to go public.
A Green Light for Token Relistings?

Regulatory uncertainty forced Robinhood to delist several cryptocurrencies in 2023, including Solana (SOL) and Cardano (ADA), after they were labeled as securities by the SEC. However, following Donald Trump’s presidential win, Robinhood reintroduced some of these tokens, signaling a shift in the regulatory landscape.

If the SEC officially abandons its Coinbase lawsuit, platforms like Robinhood may feel more comfortable relisting additional tokens, potentially increasing trading volumes and revenue. The platform’s crypto-related earnings already jumped 115% in Q4 2024, exceeding expectations.
Could Crypto IPOs Finally Take Off?

A regulatory shift could also accelerate initial public offering (IPO) plans for several crypto firms. Industry players such as Blockchain.com, BitGo, Gemini, eToro, Ripple, and Circle have long been rumored to be eyeing public listings. With less SEC scrutiny, these companies may move forward with IPOs, drawing more institutional capital into the sector.

Moreover, the top tokens previously classified as securities—including Binance Coin (BNB), Solana (SOL), Tron (TRX), and Toncoin (TON)—may see renewed investor confidence as legal risks diminish.

As the SEC potentially softens its stance, crypto markets could enter a new phase of growth, benefiting exchanges, traders, and firms looking to tap into public markets.