Coinbase at a Crossroads: CEO Rejects Crypto Bill

By Ion Jauregui – Analyst at ActivTrades

The CEO of Coinbase, Brian Armstrong, has sent a clear message to the United States Congress: the company can no longer support the cryptocurrency bill approved in draft form by the Senate Banking Committee, because it considers it “worse than the current situation.” Armstrong criticized that the proposed regulation limits the trading of tokenized stocks, expands government access to user data, and weakens the CFTC’s authority compared to the SEC. According to the executive, the company prefers no regulation rather than approving one that would hinder innovation and competitiveness in the crypto sector.

This stance places Coinbase, one of the main players in the industry, at the center of a debate that could delay the bill’s approval and highlight tensions between regulators and crypto companies.

Financial Impact of the Decision

From a fundamental perspective, Coinbase (NASDAQ: COIN) shows solid growth:

2024 Revenues: USD 6.29 billion, with a 41% net margin.

Q3 2025: revenues of USD 1.87 billion (+55% YoY) and EPS of USD 1.44, surpassing market expectations.

The business has diversified revenue beyond cryptocurrency trading, including subscription services, staking, and stablecoins, which partially reduces dependence on Bitcoin’s volatility. Its strong balance sheet allows it to face periods of uncertainty, although regulatory exposure remains a latent risk.

Consolidation Phase Perspective

The stock is currently in a consolidation period. After reaching highs of USD 444.65 in July 2025, the company experienced a price correction following consecutive Bitcoin declines. The correction has stabilized around the Point of Control (POC) at approximately USD 265.72, close to yesterday’s closing price of USD 255.86.

Observing moving average crossovers, we see a broader downtrend since December 17 of last year, which has not yet been corrected. The RSI signals a recovery to neutral territory, while the MACD shows a timid upward trend with the histogram in positive territory, still above the signal line. Additionally, the ActivTrades US Market Pulse indicator points to neutrality in the U.S. market, indicating that these corrections are highly specific to the crypto sector.

If bearish pressure remains stuck near the POC, the stock is likely to trade in a range while waiting for new news. If the regulation is implemented as currently proposed, the stock could correct down to test the lows of USD 142.58. Conversely, if the regulation is adjusted in line with the preferences of major listed crypto players like Coinbase, and if 2025 financial results in February are positive, the stock could recover toward USD 333.43, the previous consolidation zone and current main resistance before historical highs.

Technical Analysis

Technically, COIN is in a consolidation phase:

Key support: USD 225 and lows at USD 142.58

Main resistance: USD 333.43, USD 373.25, and USD 402.16

Indicators such as RSI show neutral levels, reflecting sideways movement as the market evaluates regulatory impact.

The stock maintains high correlation with Bitcoin, so movements in the crypto market will continue to influence its performance.

Will Innovation Be Limited or Will Institutional Rigidity Prevail?

Coinbase faces a critical moment: it combines solid growth and revenue diversification, but remains under pressure from regulation and market volatility. Armstrong’s opposition to the bill makes it clear that the industry will not accept rules that limit innovation, and emphasizes that legislative clarity will be key to defining the company’s direction and the crypto market in the United States.

It is unclear whether the Trump administration will heed dissenting voices despite being business-friendly, but it is evident that this regulation will eventually be implemented, although likely adapted to the majority demands of corporate actors such as Coinbase.


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