Coinbase Joins S&P 500, Boosting Crypto Market Sentiment

Coinbase stock surged more than 18% Tuesday after the company was officially added to the S&P 500 index. It’s a historic moment—not just for the company but for the entire crypto industry, once heavily scrutinized by U.S. regulators.

The inclusion, set for May 19, signals a turning point. Wall Street is now embracing crypto as a legitimate and lasting part of the financial ecosystem.

From SEC Scrutiny to Mainstream Recognition

Just months ago, Coinbase faced intense litigation from the Securities and Exchange Commission (SEC). The agency had charged the exchange with operating as an unregistered national securities exchange, broker, and clearing agency.

That all changed after President Trump’s administration reshuffled regulatory leadership. With crypto advocate Paul Atkins replacing Gary Gensler at the SEC, the case against Coinbase was dropped. It marked a major policy pivot toward pro-crypto regulation.

Industry and Investor Reactions Are Strongly Positive

Coinbase executives were quick to acknowledge the moment. “This is a major milestone, not just for Coinbase, but for the entire crypto industry,” said CFO Alesia Haas. The announcement comes amid a broader crypto rally, led by Bitcoin surpassing $100,000.

Gautam Chhugani of Bernstein called the development “a dramatic turnaround” for crypto. He emphasized the shift from regulatory hostility to financial innovation, signaling that crypto is now entering the economic mainstream.