SEC drops case against Coinbase — a win for crypto or payback for donations?
The SEC’s decision to drop its lawsuit against Coinbase raises questions. Is this a turning point for crypto regulation or a political reward for industry donations?
Opinion by: Ross Shemeliak, co-founder and chief operating officer of Stobox
Following US President Donald Trump’s return, Coinbase saw the Securities and Exchange Commission drop its 2023 lawsuit, alongside Robinhood Crypto’s investigation closure. On Feb. 25, the SEC also ended its federal probe into Uniswap Labs, triggering market declines with Coinbase and Bitcoin (BTC), the latter of which dropped from its $109,114 peak to $87,000, marking a notable 20% retreat. There’s no apparent reason in sight, but the overall logic of the investors’ reaction is understandable: They are not keen on unpredictability and usually care about the market much more than specific companies.
The reason the SEC dropped all these cases is less important than the answer to what this tells us about Trump’s presidency and crypto. The fact that the Trump administration has received crypto donations doesn’t help. Let’s recall how Coinbase and Robinhood have donated to Trump, with Uniswap also participating in a crypto super PAC, Fairshake, worth $116 million.