The SEC finally admitted they were wrong, and announced that they're about to dismiss their case against crypto giant Coinbase.

Bitcoin didn’t move much on the news, but those who understand the gravity of this move were likely jumping up and down for joy.

We’ve talked a lot about a new SEC, but this is a development that underlines what that means for our industry. 

The Backstory

The SEC tried to come for Coinbase back in June 2023, which is really off – the thing is, they'd already approved Coinbase's public listing two years earlier.

That's like getting married and then asking for ID at the honeymoon… which, in perspective, only makes sense in Las Vegas. 

But now the case is being dropped with no fines, no penalties, and no mandatory prostrating before the commission with a "we're sorry for being a crypto exchange."

The SEC commissioners still need to sign off, but it's looking more bullish than we’ve seen in a while – finally, some recognition that this was a bizarre case from the start, given the approvals that preceded it. 

Coinbase essentially told the SEC, "we've been right the whole time, are you nuts?" and the SEC actually replied with, “Huh.. yeah, our bad.” 

Why This Changes Things

Every crypto company that's been living in regulatory fear just got hope, and the whole industry now looks a lot more legitimate on the back of the news.

Any naysayer could point to the fact that, despite all the moon shots and gains, the regulatory uncertainty made crypto untenable for your institutional investor.

Now, with this Coinbase suit out of the way, that all changes. 

CEO Brain Armstrong is out here dropping truth bombs about 50 million Americans holding crypto, highlighting that the future is no longer inevitable – it’s here. 

No doubt he likely feels more validated than a successful blockchain transaction with dozens of confirmations. 

With Gensler out and Trump's appointment of Paul Atkins in, we’re about to witness what happens when the SEC is chaired by someone who actually knows what a blockchain is on a technical level rather than someone who thinks it's evil incarnate.

A New Era

The "everything is a security" era looks like it’s finally over, and the crypto markets are more bullish than they’ve been in a long time (despite the short-term pullbacks.) 

Clear regulation might actually become a thing – when the SEC starts playing nice, we definitely have a bigger chance of a bull market. 

And somewhere, Gary Gensler is probably updating his LinkedIn profile.