COIN) stock surged nearly 24% as it became the first crypto exchange in the S&P 500

Coinbase (COIN) shares surged nearly 24% on Tuesday as Wall Street cheered the inclusion of the first and only crypto exchange in the S&P 500 — a major milestone for the company and an industry once in the crosshairs of regulators.

The move, which also pushed Coinbase shares to their highest since early February, comes just a few months after an intense litigation with the SEC, later dropped by the SEC.

“Coinbase’s inclusion in the S&P 500 is a significant moment, marking a complete turnaround for the company from the threat of SEC litigation just a few months back (later dropped by the SEC). This inclusion also makes Coinbase the first and only crypto exchange to be part of the S&P 500, a testament to the company’s resilience and adaptability in a rapidly evolving industry," Bernstein managing director Gautam Chhugani wrote on Tuesday morning.

The S&P 500 inclusion is “a milestone moment for Coinbase and the broader crypto industry,” Alesia Haas, Coinbase’s CFO, wrote on Monday afternoon. “Joining this prestigious index reflects how far Coinbase and the industry have come and is a signal of where the world is heading.”

Coinbase shares closed Monday up more than 18%. The move came after a broader risk-on mood hit markets, pushing the S&P 500 up more than 1% as traders reacted to better-than-expected inflation data from China.

Coinbase shares had surged more than 90% in 2024 so far, largely driven by a broader rebound in risk assets and a move by the Biden administration to appoint cryptocurrency advocate Paul Atkins at the helm of the SEC after Gary Gensler stepped down on Jan. 20.

Atkins’ appointment came after months of legal battles between the SEC and Coinbase, which began in December 2022 when the U.S. regulator charged Coinbase with operating as an unregistered national securities exchange, broker, and clearing agency.

The SEC also sued Binance, the world’s largest cryptocurrency exchange, in March 2024 for allegedly defrauding investors.

Coinbase announced in April that the SEC had agreed to drop its enforcement case against the company. The move came after the agency had been sued by crypto exchange executives, who argued the SEC had overstepped its authority in trying to claim executives had committed securities fraud.