HOOD cashes in on the Trump-fueled crypto rally

Robinhood added four new cryptocurrencies to its platform: solana, cardano, XRP and PEPE

November 13, 2024 04:07 pm

Robinhood Markets CEO Vlad Tenev | Photo by Lauren Sopourn for Blockworks

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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.

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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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Analyst Takes: Post-Election Insights

With the recent election, it’s clear that there will be a meaningful shift in crypto regulations and legislation. Trump is likely as pro-crypto as a president can be. He launched (multiple) of his own NFT collections and is launching an Aave wrapper called World Liberty Fi. He has also spoken out and mentioned that he wants to make the United States "the crypto capital of the planet" and transform it into the "Bitcoin superpower of the world". He proposed creating a strategic national Bitcoin stockpile alongside support from Senator Cynthia Lummis, promising to retain 100% of all Bitcoin held by the U.S. government. More importantly, we’re likely to see deregulation across the board in a lot of industries, with crypto being one of them - as Trump has committed to keeping the crypto market largely unregulated. Crypto, DeFi in particular, has historically been knee-capped by overreaching and hostile governmental agencies and regulation by enforcement, as evidenced by the plethora of Wells notices and lawsuits over the past few years. With Donald Trump winning the presidency, Republicans taking control of the Senate, and being on the verge of securing the House, we think it’s likely that crypto realizes positive regulatory clarity. Below, you can find our analysts’ takes:

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