SEC Drops Lawsuit Against Coinbase

CRYPTO
SEC Drops Lawsuit Against Coinbase

The crypto industry is seeing major wins under President Trump’s administration. Coinbase announced that the SEC has agreed in principle to dismiss its lawsuit against the exchange, pending commissioner approval. CEO Brian Armstrong expects final approval next week.

Trump has embraced crypto, appointing a pro-crypto AI and blockchain czar and proposing Paul Atkins, a crypto-friendly figure, to lead the SEC. Acting SEC Chair Mark Uyeda has already softened enforcement, pausing litigation against Binance and forming a new regulatory task force.

Previously, under SEC Chair Gary Gensler, the agency aggressively pursued crypto firms, suing Gemini, Kraken, Binance, and Coinbase over alleged securities violations. Coinbase fought back in court and in politics, leading a $130 million campaign to elect pro-crypto candidates.

Armstrong also met privately with Trump, and Coinbase contributed $1 million to his inauguration fund. The SEC’s decision to drop its case comes just a month after Gensler’s resignation, signaling a regulatory shift.

TECH
Alibaba Invests $50B in AI Growth

Alibaba announced plans to invest over $50 billion in AI and cloud computing over the next three years, reinforcing its commitment to long-term technological innovation. This move follows a surge in Chinese tech stocks, with Alibaba’s shares hitting a three-year high.

The company’s investment surpasses its total AI and cloud spending over the past decade, aiming to accelerate AI-driven growth. Alibaba’s revenue grew 8% in Q4 2024, reaching 280 billion yuan, exceeding estimates and triggering a 14% rise in Hong Kong shares.

The Chinese tech sector has rebounded after years of regulatory crackdowns. Investor sentiment improved after Chinese startup DeepSeek launched a groundbreaking AI chatbot, boosting industry confidence. Meanwhile, Jack Ma’s recent meeting with President Xi Jinping signals potential government support for big tech.

Alibaba’s renewed focus on AI and cloud computing positions it as a key player in China’s evolving digital economy, despite broader economic uncertainties.

TECH
Fintech Giants Compete for Digital Banking

Major U.S. fintech firms Block, Affirm, and PayPal are converging in their efforts to become digital-first financial institutions. Block, originally Square, focuses on payments, Affirm pioneered buy now, pay later (BNPL), and PayPal revolutionized online transactions. Now, all three are expanding their financial services.

Block's Q4 earnings disappointed investors, causing an 18% stock drop. However, CEO Jack Dorsey emphasized their strategy of integrating payments, banking, and Bitcoin investing into Cash App. Meanwhile, Affirm’s stock surged 22% after exceeding earnings expectations, with its active BNPL users rising 23% to 21 million.

PayPal, under new CEO Alex Chriss, is revamping Venmo and Braintree while integrating physical payment options. Despite strong earnings, its stock fell 13% due to lower-than-expected transaction volume.

All three fintechs are aggressively expanding beyond their core markets, offering debit cards, lending, and business payment solutions to compete with traditional banks in a rapidly evolving digital finance landscape.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.