SEC Pauses, Drops, and Closes: A Month of Regulatory Reversals

• Things look different at the SEC after Gary Gensler’s exit.
• The SEC has dismissed multiple lawsuits and paused others.
• Coinbase CEO considers the new SEC approach crucial for the crypto industry.

One month into Gary Gensler’s exit from the SEC, things now look different for the Commission and the broader crypto market. The industry’s regulatory setup seems to be changing to user expectations, after promises of a crypto-friendly regulatory environment. 

A few notable events suggest the SEC is gradually moving toward the new US President’s goal. Still, it’s gradual, and pending regulatory cases may be treated individually, even if the results are similar. For instance, the SEC has reportedly agreed to dismiss the lawsuit against centralized exchange firm Coinbase.

According to Coinbase CEO Brian Armstrong, the dismissal is subject to approval from an SEC commissioner before the withdrawal is complete. However, he considers the potential withdrawal a big deal for the entire crypto industry and a crucial signal about cryptocurrency’s future.

Related: Ripple CEO Applauds SEC for Dropping Coinbase Lawsuit: Time for XRP to Shine?

Robinhood, Binance, OpenSea, Uniswap Cases Halted

Besides Coinbase, reports indicate the SEC finished investigations into Robinhood and decided to end the case. 

Robinhood’s chief legal officer, Dan Gallagher, commented the SEC had no reason to start the case and welcomed the return of law and fairness at the Commission.

In the meantime, the SEC paused the case against Binance, closed the case against OpenSea, and shut the case against Uniswap all within one month.

Related: SEC Ends Robinhood Crypto Investigation: Broader Crypto Relief in Sight?

These developments signal a turnaround from the Commission’s approach under the formal chair. It has boosted crypto users’ expectations towards the remaining cases, the top among which is the protracted litigation between Ripple and the SEC.

Although the crypto industry’s regulatory environment is experiencing a positive turnaround, the crypto market has yet to reflect the impact. 

A bearish pressure has overwhelmed the market in the last few days, with Bitcoin dropping below $90,000 for only the second time this year. Despite this, analysts are still optimistic the regulatory shift will have a lasting effect, encouraging crypto adoption and improving the market’s health.