Crypto News : The U.S. Securities and Exchange Commission (SEC) has terminated its investigations into cryptocurrency giants Coinbase, Kraken, and Yuga Labs—the creators of Bored Ape Yacht Club NFTs—in a dramatic pivot cheered by the crypto industry.
Highlights
- SEC ends investigations into Coinbase, Kraken, and Yuga Labs, signaling a crypto-friendly shift.
- Pivot follows Trump’s White House Crypto Summit and pledge to end regulatory “war” on industry.
- Crypto stocks surge as market sees relief, though regulatory clarity remains pending.
The decision, confirmed Friday, March 7, comes on the heels of President Donald Trump’s White House Crypto Summit, where he vowed to halt the federal “war on crypto,” marking a sharp departure from the Biden administration’s aggressive enforcement stance. The move has sparked a rally in crypto stocks, though questions linger over the SEC’s next steps under Trump’s influence.
A Regulatory Thaw Post-Summit
The SEC’s closure of probes into Coinbase Global Inc., Kraken, and Yuga Labs was quietly announced late Thursday, with sources telling Reuters and The Wall Street Journal that no enforcement actions will follow.
- Coinbase faced scrutiny since 2022 over its staking services and token listings,
- Kraken battled a 2023 lawsuit over unregistered securities, and
- Yuga Labs was under review for its $4 billion NFT empire.
“We’ve been vindicated—crypto isn’t the enemy,” Coinbase CEO Brian Armstrong said at the summit, attended by industry leaders like Robinhood’s Vlad Tenev and MicroStrategy’s Michael Saylor.
Trump’s March 7 pledge to “end the bureaucracy’s war” on digital assets—backed by his Strategic Bitcoin Reserve order—appears to have spurred the SEC’s retreat.
Crypto Czar David Sacks, a summit co-host, hailed it as “a new era,” noting the agency’s shift aligns with directives from Trump’s transition team, which demanded lighter oversight since January.
Industry Relief, Market Bounce
The dropped probes lifted a cloud over three crypto heavyweights. Coinbase, the largest U.S. exchange, saw its stock jump 7% Friday, while Kraken’s parent, Payward Inc., and Yuga Labs’ NFT market cap ticked up amid broader gains—Robinhood rose 9%, per Bloomberg.
The relief follows years of SEC lawsuits under ex-Chair Gary Gensler, who labeled most tokens securities; his December 2024 exit, hastened by Trump’s win, paved the way for acting Chair Ann Berry to signal détente. “The industry’s been unshackled,” Kraken co-founder Jesse Powell told CNBC, crediting Trump’s $250 million crypto lobbying haul for flipping Senate seats and softening regulatory headwinds.
Still, the pivot lacks specifics. Summit attendees pushed for stablecoin laws and ETF approvals, but Acting Chair Berry has only committed to “reviewing” past policies, leaving gaps Trump promised to fill.
Critics like Sen. Elizabeth Warren warned of unchecked risks—“Sacks can’t regulate what he once owned”—though his pre-appointment asset sales blunt conflict claims.
A Tentative Crypto Dawn
The SEC’s about-face, days after Trump’s summit and bitcoin’s dip to $85,000, reflects a broader U.S. crypto embrace—evident in his reserve plan and summit optics. Yet, with the Dow off 300 points Friday amid trade war noise, the market craves more than dropped probes.
“It’s a win, but we need legislation,” Ripple’s Brad Garlinghouse cautioned, eyeing stalled Capitol Hill efforts. As Canada’s Starlink snub and Iran threats vie for Trump’s focus, the SEC’s pivot offers crypto a breather—but its future hinges on whether his summit promises turn into policy gold.
