Good news for the crypto world: the American Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Coinbase. This means that the trading platform will not be fined and will not have to make any changes to its working methods. The final approval of the Commission is still pending, but according to CEO Brian Armstrong, it could be finalized as early as next week. This news has positively influenced the crypto market, with rising prices for various tokens, including Cardano price.
Why had the SEC sued Coinbase?
In June, the SEC accused Coinbase of trading in unregistered securities. Thirteen tokens were mentioned, including Cardano (ADA), Solana (SOL) and Polygon (MATIC). The SEC claimed that these tokens were under the control of their development teams and therefore should be considered securities. For Cardano, the SEC specifically pointed to the influence of the Cardano Foundation, EMURGO and Input Output Global (IOG), the three most important entities behind the project.
After the news broke, Charles Hoskinson, the founder of Cardano, responded with the words: “Calm returns.” This reflects the relief within the crypto community, which has experienced months of uncertainty due to the lawsuit. The dismissal of the case against Coinbase can be seen as an indirect victory for Cardano and other projects involved. It lowers the chance that ADA will be classified as a security, which would have increased regulatory pressure.
The healing has begun https://t.co/5kW3YLD1D3 pic.twitter.com/rMGkmQVCo0
— Charles Hoskinson (@IOHK_Charles) February 21, 2025
What does this mean for the Cardano price?
The financial markets reacted immediately to the news. The Coinbase price rose by 4.52% in pre-market trading. At the same time, the Cardano price rose to $0.77. This increase could be the start of a broader rally, especially if investors regain confidence in the regulatory climate.
If the SEC drops the case for good, it will be a major victory for Coinbase and the crypto sector as a whole. For Cardano, this could mean growing institutional interest as the threat of legal problems diminishes. This could lead to higher adoption of ADA and more stable price development.
