Coinbase’s recent inclusion in the S&P 500 Index represents a watershed moment for the cryptocurrency industry, signaling mainstream acceptance of digital assets within traditional financial markets. The crypto exchange will replace Discover Financial Services in the prestigious index effective May 19, following Capital One’s acquisition of Discover.

A Landmark Achievement for Cryptocurrency

“It’s a huge moment for crypto to now be in the S&P 500 with Coinbase entering and it means that crypto is here to stay,” Coinbase CEO Brian Armstrong told Bloomberg’s Sonali Basak in a recent interview. Armstrong emphasized the significance of this development, noting that “People are going to have crypto exposure and all their 401Ks and it points a little bit to I think, where the future of financial services is going.”

The inclusion marks a pivotal moment for the crypto sector as it will provide millions of everyday investors and investment portfolios with access to a crypto-centric firm. Coinbase currently boasts a market capitalization of approximately $53 billion and is listed on the Nasdaq exchange.

Market reaction to the news has been overwhelmingly positive. Coinbase shares surged 24% on May 13, 2025—marking their biggest one-day gain since the day after Donald Trump’s election victory, according to Nasdaq. The stock closed at around $257, pushing it into positive territory for 2025 after a period of volatility.

Ripple Effects Across the Market

The inclusion has had significant impacts beyond just Coinbase itself. ETFs with substantial exposure to COIN shares experienced notable gains, with the First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) jumping 7.4%, Global X Blockchain ETF (BKCH) gaining 6.8%, and Fidelity Crypto Industry and Digital Payments ETF (FDIG) adding 6.7% on May 13, as reported by Nasdaq.

This pattern is typical for companies added to the S&P 500, as passive funds and ETFs must purchase shares to track the benchmark index. To qualify for inclusion, companies must demonstrate profitability both in their latest quarter and cumulatively over the previous four quarters.

Expanding the Crypto Ecosystem

During his Bloomberg interview, Armstrong outlined his vision for cryptocurrency’s role in reshaping the financial system. “Crypto is a technology to update the financial system,” he stated, comparing the industry’s evolution to the internet revolution. “First you had dot.com startups and then every company, every Fortune 500 company uses the Internet. So we think it’s going to be very similar.”

Armstrong also discussed Coinbase’s own index, “Coin 50,” which tracks the top 50 crypto assets by market capitalization. “Some day we hope people might actually feel the same way about getting in the coin 50 index” as they do about the S&P 500, he said.

Regulatory Landscape and Future Directions

A significant portion of Armstrong’s Bloomberg interview focused on pending stablecoin legislation. Armstrong emphasized the importance of ensuring that cryptocurrency technology develops within the United States, noting bipartisan interest in advancing regulation. “The 52 million Americans who use crypto really want to see this legislation get passed so that this industry can get built here on shore in America,” he stated.

Armstrong advocated for specific policy positions, including excluding decentralized finance (DeFi) from anti-money laundering provisions while applying them to centralized exchanges and custodians. He also argued against prohibitions on paying interest and yield in cryptocurrencies, suggesting that “banks should have to compete on a level playing field with crypto.”

Looking toward future developments, Armstrong expressed interest in tokenized equities, suggesting that “all asset classes are being tokenized.” He noted recent discussions with the SEC task force on this topic, indicating “a general willingness to have these kind of asset classes come on chain now.”

As Coinbase prepares to join the S&P 500 on May 19, Armstrong’s comments reflect both the company’s achievement and its ambitious vision for cryptocurrency’s integration into the broader financial ecosystem. This milestone potentially represents just the beginning of crypto’s mainstream financial journey.