U.S. SEC drops lawsuits against crypto firms en masse—what regulatory actions are still to come?
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U.S. SEC drops lawsuits against crypto firms en masse—what regulatory actions are still to come?
If the Trump administration takes the following three steps, it could be evidence that they value cryptocurrency and care about the market.
Navigating Web3 tides with focused insightsAuthor: Ross Shemeliak, Cointelegraph
Translation: Felix, PANews
Following Donald Trump's return to the U.S. presidency, the Securities and Exchange Commission (SEC) dropped its 2023 lawsuit against Coinbase and halted its investigation into Robinhood’s crypto division. On February 25, the SEC also concluded its federal probe into Uniswap Labs. However, shortly afterward, both Coinbase and the broader Bitcoin market declined—Bitcoin fell from a peak of $109,114 to $87,000, a drop of about 20%. While there was no clear reason for the decline, the general logic behind investor sentiment was evident: markets dislike unpredictability and tend to prioritize overall market conditions over individual companies.
The reasons behind the SEC dropping these cases may not matter as much as what they signal about President Trump’s stance on cryptocurrencies. Notably, both Coinbase and Robinhood have made political donations to Trump, and Uniswap participated in Fairshake, a cryptocurrency political action committee (PAC) that raised $116 million.
Do these developments send a message to investors that donations are being rewarded? Or are they merely coincidental? Do they indicate a welcoming attitude toward crypto from Washington? Fortunately, there are ways to assess the Trump administration’s true position on digital assets. If the administration takes any of the following three steps, it could be strong evidence that it values the crypto industry and understands market dynamics.
Regulatory Shift: CFTC or SEC Revises Stance on Token Securities
The SEC’s position on whether tokens are securities is critical. Under previous leadership, the SEC sought to classify most tokens as securities. Such classification creates significant risk—not only for issuers but also for developers building technologies that interact with or facilitate trading of these tokens, exposing them to liability related to unregistered securities. This remains a major barrier for the crypto industry.
A shift by the Commodity Futures Trading Commission (CFTC) could also significantly impact the sector. Historically, a company’s success has often correlated with token price performance, yet firms have had little control over how regulators classify their tokens. If the CFTC adopts a more accommodating regulatory posture, it could encourage more U.S. companies to engage with crypto.
Currently, the CFTC does not regulate cryptocurrencies and lacks formal authority to do so. Transferring jurisdiction over digital assets to the CFTC would strongly signal broad government support for the industry. As a smaller and less aggressive regulator than the SEC, the CFTC is more likely to pursue collaborative rather than enforcement-heavy regulation. Achieving either a shift at the SEC or empowering the CFTC would remove substantial legal risks facing U.S. crypto firms, opening the door for innovative companies to operate confidently in the American market.
Adoption of Stablecoins
Greater adoption of stablecoins could drive growth in crypto-based payments, particularly benefiting small and medium-sized businesses (SMBs). SMBs exploring crypto payments typically start with stablecoins, so clear legal frameworks governing their use are essential. Vague regulations that fail to specifically address stablecoins are insufficient. Businesses need a clearly defined regulatory structure.
What would improved regulation achieve? Greater confidence. With clearer rules, companies transitioning from stablecoins to broader crypto usage would operate with more certainty. Crucially, as more businesses adopt crypto payments, new opportunities will emerge for U.S.-based crypto firms. To foster this positive cycle, dedicated legislation recognizing stablecoins as legitimate payment instruments is needed. Direct regulatory oversight, assurance of reserve transparency, and risk management for stablecoin issuers would further strengthen trust.
FinCEN Plays a Role
Another key obstacle is the difficulty crypto firms face in opening bank accounts. Even when successful, they often encounter high service fees and costs because banks perceive the crypto industry as posing significant money laundering risks. The irony is stark: an industry designed to create an alternative financial system remains dependent on traditional banking.
For the crypto ecosystem to grow, financial institutions must provide services to crypto-related entities. It is equally clear that without participation from traditional banks, the development of the crypto economy will remain constrained. A pivotal change could come from the Financial Crimes Enforcement Network (FinCEN). If FinCEN revises its risk assessment framework for crypto businesses, banks would likely follow suit in adjusting their own evaluations. Financial institutions would then become more willing to partner with crypto companies.
The Path Forward for Cryptocurrency
The future of cryptocurrency in the United States remains uncertain. While the Trump administration has accepted donations from crypto firms, market uncertainty persists. Monitoring actions by the CFTC and FinCEN, along with positive shifts in crypto regulation, can help clarify the administration’s stance. These three areas are complex and often difficult to interpret, but together they offer valuable insight into the true intentions behind U.S. crypto policy during Trump’s presidency.
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