SEC Drops Coinbase Lawsuit as Crypto Market Faces Turmoil with Bitcoin Below $90K and $1.5B Hack Shaking Confidence

Crypto Industry Sees Major Legal and Market Shifts

The cryptocurrency industry has witnessed a significant legal victory as the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase. According to The Washington Post, this decision marks a turning point for the digital asset sector, moving away from "regulation by enforcement" to a more structured legislative approach. Under the Biden administration, SEC Chairman Gary Gensler initiated over 100 crypto-related actions, but his successor, Paul Atkins, is expected to adopt a more crypto-friendly stance. The SEC has also paused its case against Binance, signaling a broader shift in regulatory priorities. However, concerns remain about the enforcement of new rules, especially in light of recent security breaches like the $1.5 billion hack of Bybit, which sent shockwaves through the market.

Source: The Washington Post (https://www.washingtonpost.com/opinions/2025/02/25/coinbase-sec-lawsuit-dropped/)

Bitcoin Drops Below $90,000 Amid Market Uncertainty

Bitcoin's price has fallen below $90,000, erasing gains made during Donald Trump's presidency, reports The Associated Press. The cryptocurrency, which had peaked at $106,000 around Trump's inauguration, has seen a sharp decline due to a combination of macroeconomic factors and security concerns. Trump's tariff policies have created economic uncertainty, leading investors to sell off assets. Additionally, the recent $1.5 billion hack of the Bybit exchange, reportedly linked to North Korea, has further shaken investor confidence. Despite these challenges, some see the dip as a buying opportunity, with Eric Trump encouraging investors to "buy the dips" on social media.

Source: The Associated Press (https://apnews.com/article/bitcoin-crypto-trump-milei-melania-87b81b22e066617beafc6d5f08b2622d)

Citadel Securities Eyes Crypto Market-Making Role

Citadel Securities is reportedly planning to become a liquidity provider for major cryptocurrency exchanges like Binance, Coinbase, and Crypto.com, according to Cointelegraph. The firm, which has previously avoided retail crypto trading due to regulatory uncertainties, is now positioning itself to capitalize on a potential market boom under the Trump administration. Citadel has already made inroads into the crypto space through its co-founding of EDX Markets, an institutional crypto exchange. The extent of Citadel's involvement will depend on how U.S. regulations evolve in the coming months.

Source: Cointelegraph (https://cointelegraph.com/news/citadel-securities-makes-plans-crypto-liquidity-provider)

Crypto Prices Plunge Amid Tariffs and Security Breaches

The cryptocurrency market is experiencing a significant downturn, with Bitcoin, Ethereum, and other major tokens seeing sharp declines. Fast Company reports that Bitcoin has dropped 7% in the last 24 hours, falling below $90,000 for the first time since November 2024. The decline is attributed to macroeconomic uncertainty caused by Trump's tariff policies and the recent $1.5 billion Bybit hack. The hack, believed to be the largest in crypto history, has highlighted vulnerabilities in the industry, further unsettling investors. Other cryptocurrencies, including Dogecoin and XRP, have also seen double-digit losses in recent days.

Source: Fast Company (https://www.fastcompany.com/91284442/crypto-crash-today-why-bitcoin-doge-trump-xrp-falling-prices)

Uniswap Investigation by SEC Concludes

Uniswap Labs has announced that the SEC has ended its investigation into the decentralized finance (DeFi) platform, reports Law.com. The investigation, which began with a Wells notice in April, accused Uniswap of operating as an unregistered broker and issuing unregistered securities. This development follows a series of similar actions by the SEC, including dropping investigations into Robinhood's crypto division and the NFT platform OpenSea. The SEC's new approach under the Trump administration appears to be more lenient, focusing on fostering innovation in the crypto space rather than punitive measures.

Source: Law.com (https://www.law.com/nationallawjournal/2025/02/25/uniswap-says-sec-has-ended-its-investigation-into-the-defi-crypto-exchange/)

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