The crypto space has seen a new development as the US Securities and Exchange Commission finally dropped its case with Coinbase, the largest cryptocurrency exchange in the US. The new development was announced on Thursday signaling a potential shift in the regulatory body’s approach to crypto oversight.

A New Regulatory Approach for Crypto

Coinbase has been facing a lawsuit from the SEC for the past two years. But just last week, the regulators agreed to drop the case against Coinbase. This was later confirmed by the SEC, who stated that they are now trying to build a more comprehensive and clear regulatory approach for digital assets through their newly opened crypto task force.

In light of the agency’s change in attitude regarding the need for proper guidelines instead of endless litigation, this comes as no surprise. In a statement, SEC staff also added that meme coins tend to not be classified as federal securities. Yet state and federal governments can still prosecute fraudulent usage of meme coins.

Industry Reactions and Future Implications

The SEC’s decision was met with optimism across the crypto industry. Chiliz CEO Alexandre Dreyfus took to X (formerly Twitter) to express relief, stating that the move could reignite innovation in the U.S. crypto space. “As we invested $80 million USD back in 2021 in the sports x blockchain space in the US, it’s time for us to re-explore the market. Let’s bring back SportFi,” he wrote.

Another user, Crynet, echoed the sentiment, celebrating the newfound “breathing room” for the industry while hoping that SportFi’s revival in the U.S. would be a success rather than another “wild penalty shootout.”

With the SEC easing aggressive law enforcement, the attention now turns to the new crypto task force and how they will regulate the crypto space going forward.While the case against Coinbase is a win for the industry, the wider picture of regulations is still foggy and this leaves stakeholders hungry for more in the coming months.