HOOD cashes in on the Trump-fueled crypto rally

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Trading app Robinhood on Wednesday added four new cryptocurrencies to its platform: solana, cardano, XRP and memecoin pepe. The move comes after the SEC has, in separate instances, named both SOL and Cardano’s ADA token securities. 

The SEC classified SOL and ADA, along with 11 other crypto assets, as securities in its June 2023 lawsuit against Coinbase. That suit is ongoing. Both tokens were also called out in the Wells notice the securities regulator sent to Crypto.com last month. 

Robinhood’s move comes as the crypto industry continues to ride a wave of euphoria and higher prices in the wake of Donald Trump’s win last week. His promises to overhaul SEC leadership and make the US a hub for digital asset businesses have many feeling optimistic. 

But let’s consider a scenario. Even if Trump replaces Gary Gensler with another current commissioner, most legal experts agree that Trump can’t actually remove Gensler entirely. So he’d still be a commissioner even if, say, Mark Uyeda becomes acting chair in January. 

To drop a lawsuit (such as the one against Coinbase), SEC staff would have to propose it to the commissioners, who would then vote. Even if the vote passes, the SEC would still have to have the motion approved by the court. 

A lot of ‘ifs’ here. I wouldn’t hold your breath.

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