Coinbase Global, Inc. announced on January 14 that it would no longer back the Senate Banking Committee’s draft Digital Asset Market Clarity Act, a move that has already prompted the committee to postpone its markup session for the bill.
The company cited three key provisions as unacceptable: limits on stablecoin rewards, a ban on tokenized equities, and a reduction in the Commodity Futures Trading Commission’s authority. Stablecoin revenue accounted for roughly $1.3 billion of Coinbase’s 2025 earnings, making the bill’s restrictions a direct threat to a core revenue stream.
Coinbase’s financial performance in the months before the announcement underscores the stakes. In Q4 2024 the company posted revenue of $1.74 billion and earnings per share of $1.63, a 82.2% and 57.0% year‑over‑year increase, respectively. In Q3 2025 revenue rose to $1.90 billion, with adjusted EBITDA of $801 million, reflecting continued growth in trading and subscription services despite broader market volatility.
The withdrawal of support has already had a tangible legislative impact: the Senate Banking Committee postponed its markup session for the Digital Asset Market Clarity Act, effectively delaying the bill’s progress. The decision signals that industry backing is a critical lever in shaping U.S. crypto regulation.
Brian Armstrong, Coinbase’s CEO, said, “We’d rather have no bill than a bad bill,” emphasizing the company’s preference for a regulatory framework that preserves its stablecoin and tokenized‑equity business models while maintaining the authority of the CFTC to oversee derivatives markets.
The move highlights the broader uncertainty facing the U.S. crypto industry. A favorable regulatory environment is essential for Coinbase’s continued expansion, and the delay may push other firms to seek alternative pathways or lobby for a more business‑friendly bill. Investors and analysts will watch how the committee’s next steps unfold and whether the bill’s provisions are revised to accommodate the concerns raised by Coinbase and its peers.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.