The U.S. Securities and Exchange Commission (SEC) has entered the process of withdrawing the lawsuit against Coinbase. This step, which is subject to approval by commission members, is seen as a significant legal victory in the crypto sector.The U.S. Securities and Exchange Commission (SEC) is preparing to withdraw the lawsuit against the cryptocurrency exchange Coinbase. This decision, pending approval from members within the regulatory agency, is considered a major legal win in the crypto sector. The complete abandonment by the SEC of the accusations that Coinbase operated an unregistered exchange and listed unregistered securities will set a precedent not only for Coinbase but also for other companies battling similar lawsuits in the industry. With this development, it is expected that the discussions about regulating cryptocurrencies in the U.S. will move from courts to Congress. Paul Grewal, Chief Legal Officer of Coinbase, stated that the settlement with the SEC includes the dismissal of the lawsuit with “prejudice.” Grewal emphasized that this decision is not just a victory for Coinbase but for the entire crypto ecosystem in the U.S. In an interview with CoinDesk, Grewal stated that “We won, they lost,” underscoring that the SEC’s reversal has significant implications for the industry. Coinbase’s CEO, Brian Armstrong, also described the development as a turning point for the sector. In a video released on Friday, Armstrong noted that the SEC’s decision to withdraw sends a strong signal about the future regulatory landscape. The Changing View on Crypto at the SEC The withdrawal of the Coinbase case by the SEC is seen as a sign of a fundamental shift in the agency’s approach to crypto assets. The SEC has long viewed cryptocurrencies as securities and defended this stance within the framework of the Howey test. However, Coinbase chose to fight in federal courts, claiming that the Howey test cannot be applied to crypto assets. Finally, a judge granting Coinbase the opportunity to present these claims weakened the SEC’s position. While the former chairman of the regulatory agency, Gary Gensler, advocated for most crypto assets to be treated as securities, the rollback in the Coinbase case indicates that the ultimate decision-maker on this matter will be Congress, not the courts. Consequently, the crypto sector is expected to focus more on lobbying efforts rather than legal battles. Through the Fairshake PAC, Coinbase aims to cultivate a more friendly regulatory framework in Congress by making millions of dollars in political donations. Signs of Division within the SEC Disagreements within the commission are said to have influenced the decision-making process at the SEC. Commission members Interim Chairman Mark Uyeda, Republican Commissioner Hester Peirce, and Democratic Commissioner Caroline Crenshaw form the heads of the commission. While Peirce and Uyeda have long criticized the SEC’s approach to the crypto sector, Crenshaw has shown a more skeptical attitude towards the digital asset industry. Despite uncertainty regarding Crenshaw’s stance on dropping the case, the SEC is restructuring its enforcement division related to crypto. The agency aims to move away from a period of intense focus on cases involving digital assets to pay more attention to investor protection and combating fraud. A New Era in the Crypto World Analysts believe that the SEC’s reversal in the Coinbase case could set a precedent for legal actions targeting other major crypto platforms like Binance. The regulatory agency requested a pause in the Binance case last week. Additionally, the SEC backtracked from its efforts to introduce broad regulatory definitions concerning crypto activities. These developments have raised expectations that the regulatory uncertainties that the crypto market has faced for a long time might diminish. However, the SEC’s decision does not imply that the regulatory framework will be entirely relaxed. The agency stresses that it will continue to maintain a strict stance, especially regarding investor protection and combatting fraud. On the other hand, Dennis Kelleher, the CEO of Better Markets, criticized the SEC’s reversal as a “historic mistake,” alleging that the agency acted under pressure from billionaire crypto investors instead of applying laws impartially. In the coming days, the SEC’s official vote on the Coinbase case and the court’s decision will be closely monitored. If the SEC formally drops the allegations that Coinbase listed unregistered securities, it will need to follow the same course in similar cases. Paul Grewal stated, “I hope that dropping this case will set a template for resolving other cases,” indicating that the priorities for Coinbase and the crypto sector in the future will be establishing clear regulations in the U.S. FTX Creditors to Reinvest 80% in Crypto, 62% Plan to Purchase Solana Spot: Despite FTX’s collapse, the majority of the creditors plan to continue investing in cryptocurrencies. . According to a survey conducted by NFTevening in partnership with Storible, the interest in Solana and AI-based projects remains strong. A large portion of FTX creditors intends to embark on a financial recovery process following the collapse in 2022. Survey results indicate that nearly 80% of creditors are considering reinvesting their repayments in cryptocurrencies, despite FTX’s approximately $9 billion collapse. This development demonstrates that optimism is still alive in the crypto world. Results from the survey conducted on February 19 by NFTevening in partnership with Storible reveal that a significant number of FTX creditors are maintaining their interest in Solana (SOL) and AI-based projects in their investment preferences. Solana Remains Popular Among FTX Creditors The survey, conducted through the online research platform Prolific, included 1,016 FTX creditors. Participants had to meet certain criteria, such as having at least 10% of their portfolios in Solana (SOL) or holding at least $100 worth of SOL for over a year. 62% of the participants in the survey indicated they plan to purchase Solana despite past adverse events. Events such as the release of the Libra meme coin and the Meteora scandal have negatively impacted Solana’s value. However, creditors remain hopeful about Solana’s future. According to the survey, 44% of the creditors mentioned that they are considering reinvesting in Solana-based projects. If Solana’s price drops below $145, 71% of the participants plan to either acquire more SOL or hold their existing holdings based on their strong belief in the company’s long-term growth potential. This outcome shows creditors’ commitment to accumulating assets at lower prices, viewing the decline as an opportunity. Ethereum and BNB Chains Stand Out Following Solana, the second most preferred blockchain was Ethereum (ETH) among the participants. While 31% of the individuals expressed a desire to invest in Ethereum, 16% preferred investing in the BNB Chain (BNB). These results indicate that FTX creditors are not only interested in Solana but also in major ecosystems like Ethereum and BNB Chain. Meme Coins Retain Popularity Among FTX Creditors Meme coins continue to be popular among FTX creditors. According to the survey results, one-third of the participants plan to invest in meme coins, which are speculative assets. Additionally, there is a growing interest in AI-based projects as well. 31% of the participants expressed a preference for AI-supported blockchain projects. This trend indicates a rising belief in the impact of artificial intelligence on the finance sector and digital assets. The Effects of the FTX Collapse and Recovery Process The collapse of FTX and its subsidiaries in November 2022 had a profound impact on the crypto market, with Bitcoin’s price plummeting to around $16,000. Solana experienced a 94% loss, dropping to $9.60 in December 2022. FTX’s collapse led to an extended crypto winter in the industry. However, recovery efforts in the sector are still ongoing. The Bahamian division of FTX distributed its first repayment to creditors on February 18. Creditors with claims under $50,000 received approximately $1.2 billion in capital. The second repayment from FTX is scheduled for May 30, involving a broader group of creditors. Future Expectations of FTX Creditors Under FTX’s recovery plan, it is anticipated that 98% of creditors will receive 118% of their claims in cash. By May 2024, the company is expected to distribute between $14.5 billion and $16.3 billion in total. These developments may contribute to rebuilding the trust of investors in cryptocurrencies and boost optimism in the sector following the collapse of FTX.