The U.S. SEC collectively withdraws lawsuits against crypto companies. What other actions are worth looking forward to from the regulator?

By Ross Shemeliak , Cointelegraph

Compiled by: Felix, PANews

After the return of US President Trump, the US Securities and Exchange Commission (SEC) withdrew the lawsuit filed against Coinbase in 2023 and stopped the investigation into Robinhood's crypto unit. On February 25, the US SEC also ended its federal investigation into Uniswap Labs, but then Coinbase and the Bitcoin market fell, with Bitcoin falling from a peak of $109,114 to $87,000, a drop of 20%. Although there is no obvious reason for the decline, the overall logic of investors' reactions is clear: they don't like unpredictability and are generally more concerned about the market than specific companies.

The reasons why the SEC dropped these cases are not important, what matters is the attitude towards Trump’s presidency and cryptocurrencies. It is worth mentioning that Coinbase and Robinhood have donated to Trump, and Uniswap is also involved in the $116 million cryptocurrency political action committee (PAC) Fairshake.

Does this send a signal to investors that the donations were accepted? Or is it just a coincidence? Does this mean that Washington is welcoming cryptocurrencies? Fortunately, there are ways to determine the stance of Trump’s presidency on cryptocurrencies. If the Trump administration takes the following three actions, it may be evidence that they value cryptocurrencies and care about the market.

Regulators may shift stance on token securities, CFTC or SEC

The SEC’s stance on token securities is critical, and the SEC, under previous leadership, intended to designate most tokens as securities. This designation means you could be at risk: even if you don’t issue tokens directly yourself, developing technical solutions that interact with or trade tokens could expose you to legal risk associated with potential involvement in unregistered securities. This remains a significant hurdle for the crypto industry.

The Commodity Futures Trading Commission (CFTC) could also change its stance on cryptocurrencies. Historically, the success of a company has been a significant factor in the price of a token, and classifying a token as a security is not really in the hands of the company. However, if the CFTC relaxes regulations, it could have a significant impact on U.S. companies that are more likely to get involved in cryptocurrencies.

Currently, the CFTC does not regulate cryptocurrencies and does not have the authority to do so. Transferring jurisdiction over cryptocurrencies to the CFTC is a strong indication of the new administration's broadly supportive stance toward cryptocurrencies. As a smaller, less aggressive regulator, the CFTC is less likely to enforce regulation through law enforcement and may therefore take a more cooperative stance toward the crypto industry. Either of these two things would eliminate a significant risk for U.S. crypto companies, opening the door for innovative crypto businesses to enter the U.S. market.

Adopting Stablecoins

The adoption of stablecoins is also expected to drive the growth of crypto payments, benefiting small and medium-sized enterprises (SMBs). SMEs that begin using crypto payments often turn to stablecoins first, so these businesses must clearly understand the legal provisions regarding stablecoins. It is not enough to simply use vague regulations that do not apply to stablecoins. They need a well-defined framework to clarify regulation.

What would a better regulatory approach lead to? More confidence. Companies would enjoy greater certainty in the transition from stablecoins to cryptocurrencies. And crucially, as more businesses integrate crypto payments, more opportunities would emerge for U.S. crypto companies. To facilitate this virtuous cycle, dedicated legislation is needed to recognize stablecoins as a legitimate means of payment. Direct regulatory oversight, ensuring trust in reserves, and managing risks for stablecoin issuers would also increase confidence.

FinCEN plays a role

Another sticking point is the problem crypto businesses face in opening bank accounts. Even if they manage these accounts, they face high service costs and fees because banks consider the crypto industry to be a significant money laundering risk. This reluctance to serve crypto is ironic: the crypto industry aims to establish an alternative payment system but still relies on traditional banking.

In order for the crypto ecosystem to grow, financial institutions must provide services to crypto-related entities. It is also clear that without the participation of traditional banks, the crypto ecosystem will remain limited. The key to change may lie with the Financial Crimes Enforcement Network (FinCEN). If the bureau takes steps to revise its risk assessment of crypto businesses, banks will adjust their assessments accordingly. Financial institutions will be more willing to work with crypto companies.

The future of cryptocurrency

The future of cryptocurrencies in the United States is unclear: The Trump administration has accepted some crypto donations, but there is still uncertainty in the market. It may be helpful to understand the current administration's attitude towards the industry by paying attention to the activities of the CFTC and FinCEN and the positive shifts in cryptocurrency regulation. These three areas are always difficult to discern, but can help provide insight into the true intentions of Trump's presidency for US crypto regulation.

Related reading: Crypto Market Macro Research Report: From Tariffs to Strategic Reserves of Crypto Assets, Crypto Order in the Trump Era