SEC Dropping Coinbase Lawsuit Could Fuel Robinhood Growth, Spur Crypto IPO Wave
If the U.S. Securities and Exchange Commission (SEC) decides to drop its lawsuit against Coinbase, it could trigger a chain reaction benefiting not only crypto exchanges like Robinhood (HOOD) but also the broader digital asset industry, including potential IPOs from major crypto firms.
Token Relistings Could Boost Trading Revenue
The SEC’s lawsuit against Coinbase was a key factor behind regulatory uncertainty surrounding several cryptocurrencies, leading Robinhood and other platforms to delist assets like Solana (SOL), Cardano (ADA), and Polygon (MATIC) in June 2023. However, after Donald Trump’s election victory, Robinhood took steps to reinstate some of those tokens.
Should the SEC formally drop the case, exchanges may feel more confident in relisting additional tokens, leading to higher trading volumes and increased revenue. Robinhood has already seen crypto trading revenue surge by 115% in Q4 2024, surpassing Wall Street estimates.
More Crypto Companies Could Go Public
A softer regulatory stance could also create a more favorable environment for crypto firms considering public listings. Some of the largest projects previously classified as securities by the SEC include Binance Coin (BNB), Solana (SOL), Tron (TRX), Cardano (ADA), and Toncoin (TON).
With regulatory pressure easing, companies like Blockchain.com, BitGo, Gemini, eToro, Ripple, Circle, and Bullish Global (CoinDesk’s parent company) may feel encouraged to move forward with IPO plans, bringing greater legitimacy and institutional investment into the crypto industry.
As the SEC re-evaluates its approach under the new administration, the coming months could mark a turning point for crypto markets, exchanges, and publicly traded digital asset firms.
