Coinbase announced on Friday that the Securities and Exchange Commission (SEC) has agreed to dismiss its case against the firm, subject to the approval of the SEC’s commissioners.

Following the news, Coinbase’s stock experienced a 3% rise during morning trading.

Earlier in 2023, the SEC charged Coinbase for allegedly operating an unregistered securities exchange and for not adequately registering its crypto staking program. The case originated under the leadership of former SEC Chair Gary Gensler. However, the commission is likely to adopt a more supportive approach toward the cryptocurrency sector with the current administration of President Donald Trump and Paul Atkins, who is nominated to lead the SEC.

During an interview on CNBC’s “Squawk Box“, Coinbase co-founder and CEO Brian Armstrong emphasized that the company would not face any fines. He described the resolution of the case as a “significant day” for both Coinbase and the wider cryptocurrency community.

Armstrong remarked, “This represents an important signal that, following a small group of activists from the previous administration who attempted to unlawfully challenge this sector, we are finally turning the page and moving toward regulatory clarity in the United States.”

He further expressed hopes that the dismissal of what he termed “bogus cases” would lead to a cascading effect across the industry.

The SEC declined to comment on Coinbase’s announcement made this Friday.

One major aspect of the SEC’s charges against Coinbase, along with several other cryptocurrency cases initiated under Gensler, was determining whether specific crypto assets should be classified as securities. The SEC maintained that certain digital assets fell under existing securities regulations, necessitating additional registration and disclosure, while crypto exchanges argued for the establishment of a new regulatory framework.

During his presidential campaign, Trump showed support for cryptocurrency, attending the 2024 Bitcoin Conference and receiving contributions from industry figures. On January 23, he signed an executive order to create a working group tasked with developing a regulatory framework for the crypto market.

After Trump’s election, there was a notable surge in cryptocurrency values, with Bitcoin surpassing the $100,000 mark for the first time. Additionally, interest in meme coins has spiked, including the promotion of a Trump coin shortly before his inauguration.