The Securities and Exchange Commission (SEC) plans to drop its enforcement case against Coinbase, marking a significant shift in cryptocurrency regulation.

Following the announcement, Coinbase’s (COIN) (COIN) shares rose 3% on Friday morning. The SEC had accused Coinbase of operating an unregistered securities exchange and offering unregistered securities.

The largest U.S. crypto exchange reached an agreement in principle with the SEC to dismiss the litigation, pending approval from the agency’s commissioners. This decision marks a major win for the crypto industry, as the case was a long-standing battle over whether cryptocurrencies should be classified as securities and fall under the SEC’s jurisdiction.

The SEC has not yet commented.

Coinbase co-founder and CEO Brian Armstrong posted on X that he expects the SEC to approve the agreement next week. Then, the case will be fully dismissed, with no fines paid and no changes to Coinbase’s business.

“This is hugely vindicating, especially because many people questioned my decision to engage in litigation with the SEC on this matter in 2023,” Armstrong wrote.

Following the news, shares of Robinhood (HOOD) were also up on Friday morning. This is a positive signal for the trading platform, whose crypto division received a Wells notice from the SEC last year for allegedly violating securities laws.

The development is seen as a broader win for the crypto industry, extending beyond Coinbase. Under a pro-crypto Trump administration, the crypto world anticipates a more favorable regulatory environment and clearer guidelines, potentially easing legal pressures on crypto firms and fostering industry growth.

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