Binance Lawsuit: Paused

Coinbase Lawsuit: Dismissed

Investigations into OpenSea, Robinhood, and Uniswap

Status: Done, done, and dusted.

Over the last two weeks, President Donald Trump’s SEC has effectively dismantled its crypto caseload, ending a years-long campaign against various blockchain-related companies.

This development has generated excitement in the digital assets industry after a lengthy period of costly legal battles that threatened top exchanges.

Should the Crypto Industry Celebrate?

Legal experts caution that it’s premature for the crypto industry to celebrate a total victory. Dismissed lawsuits suggest that secondary marketplaces are likely safe, but the SEC has yet to address the legal status of numerous tokens available on those exchanges.

Arie Heijkoop, a securities regulation attorney, noted that some tokens may still be classified as securities. In April, the SEC had claimed that Uniswap Labs acted as an unregistered broker, but as of yesterday, that investigation has been closed with no enforcement action taken.

Hester Peirce, SEC commissioner and lead of the new crypto task force, suggested categorizing digital assets into four groups. Two categories would designate tokens as unregistered securities if they were marketed as securities or as part of an investment contract.

Future Outlook

Despite a pro-crypto stance from the current SEC, Heijkoop believes tokens may be classified as securities if marketed as appreciating assets. Concerns arise for altcoins like Solana, Polygon, and Cardano, previously identified by the SEC.

However, Ryne Miller, co-chair at Lowenstein Sandler, expressed confidence that the SEC won’t retroactively change the status of established tokens. He stated that the industry now faces the opportunity to define proper regulations moving forward.

Not all lawyers are optimistic. Drew Hinkes views the industry’s current situation as uncertain, emphasizing the need for clear SEC guidance on specific tokens or categories. He believes recent dismissals don’t solve classification issues.

In a recent meeting with the SEC’s crypto task force, Hinkes and other lawyers proposed a comprehensive regulatory plan for crypto in multiple areas, leaving him encouraged by the agency’s openness to ideas.