Three years ago, the SEC filed a sweeping lawsuit against Coinbase, alleging the exchange operated as an unregistered securities broker and listed tokens that qualified as securities. At the time, the action cast serious doubt over Coinbase's long-term viability as a publicly traded US company.
Today, Coinbase sits in the S&P 500 — one of the most watched equity benchmarks in the world, reserved for companies meeting strict size, liquidity, and profitability thresholds. The contrast is stark: a company the regulator tried to shut down has since earned a seat alongside the largest corporations in American finance.
The arc reflects a broader shift in the US regulatory climate around crypto. The SEC's case against Coinbase has wound down significantly, and the political environment in Washington has grown notably more accommodating toward digital assets. For the industry, Coinbase's S&P 500 inclusion is a legitimacy signal that cuts across the debate about whether crypto belongs in traditional finance — the index committee answered that question with a vote.
CoinTelegraph