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PARIS, FRANCE - JANUARY 11: In this photo illustration, a visual representation of the digital ... [+] cryptocurrency Bitcoin is displayed in front of the Securities and Exchange Commission (SEC) logo on January 11, 2024 in Paris, France. The first American Bitcoin ETF was authorized by the SEC (Commissioner of the American Stock Exchange) on Wednesday January 10, 2024. Around ten of the world's largest financial asset managers have filed an application with the SEC to launch a Bitcoin. ETFs. After blocking bitcoin from entering Wall Street for more than 10 years, the Securities and Exchange Commission (SEC) has given the green light to exchange-traded funds (ETFs) invested in bitcoin. (Photo illustration by Chesnot/Getty Images)
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The regulatory landscape for digital assets in the U.S. is shifting at an unprecedented speed, and it’s impossible to ignore the political undertones driving these changes. Within weeks of President Donald Trump’s return to office, Coinbase announced on February 21, 2025, that the SEC has dropped its 2023 lawsuit against the company, while Robinhood Crypto disclosed on February 24, 2025, that the SEC’s investigation into its business has been closed without enforcement action.
Although the SEC itself has not made a public statement confirming these decisions, the companies’ announcements have sent shockwaves in the form of long-awaited relief through the industry, signaling a dramatic reversal from the enforcement-heavy approach of the Biden administration and anti-crypto rhetoric by key congressional and agency leaders. This comes amid broader structural changes, including the formation of a new Crypto Task Force within the SEC and the appointment of pro-crypto leadership, all aligning with Trump’s campaign promise to make America the “crypto capital of the world.”
But beyond the regulatory relief, what we’re witnessing is the crypto industry’s most significant return on investment in reshaping Washington’s power dynamics. With an estimated $100 million in political contributions and nearly half of all corporate money in the 2024 election cycle coming from crypto firms, the industry is now reaping the rewards of strategic political alignment.
Regulatory Relief or Political Favoritism?
The SEC’s past enforcement approach—especially under former Chair Gary Gensler—was defined by litigation and aggressive interpretation of securities laws. The agency filed lawsuits against Coinbase, Binance, Kraken, and Robinhood, arguing that these companies offered unregistered securities and violated federal laws. The crypto industry long criticized this approach as regulation by enforcement, stifling innovation and pushing businesses offshore.
Now, with the Coinbase and Robinhood cases seemingly resolved, the question is whether this shift represents a long-overdue correction to regulatory overreach or strategic political favor to an industry that has invested heavily in reshaping the government’s stance on crypto.
