Coinbase Global Inc. (COIN) shares surged approximately 7.7% to $217.30 on Thursday, buoyed by the Senate Banking Committee's advancement of the Clarity Act, a long-anticipated crypto regulation bill. The committee voted 15-9 to send the measure to the full Senate, marking a significant step forward for the legislation that aims to clarify the regulatory landscape for digital assets.
The Clarity Act seeks to delineate the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding digital tokens. It also establishes new requirements for stablecoins—cryptocurrencies pegged to fiat currencies like the dollar. Notably, the latest version of the bill would prohibit rewards for simply holding stablecoins, treating such incentives like bank deposit interest, while allowing rewards tied to genuine transaction activity.
Coinbase CEO Brian Armstrong praised the updated bill as a “true compromise,” noting that stablecoin rewards would only be permitted if there is “some sort of material activity on the account.” The committee vote saw all Republican members in favor, joined by Democrats Ruben Gallego and Angela Alsobrooks. However, both Democrats cautioned that their committee support does not guarantee a “yes” on the Senate floor.
The bill’s progress comes at a challenging time for Coinbase, which recently reported a first-quarter net loss of $394.1 million, with revenue falling to $1.43 billion from $2.03 billion a year earlier. Last week, the company also announced plans to eliminate approximately 700 positions—14% of its global workforce—as part of cost-cutting measures, with restructuring charges estimated between $50 million and $60 million.
Despite the near-term headwinds, Coinbase executives have expressed optimism about the legislative momentum. Chief Legal Officer Paul Grewal, speaking during the company’s earnings call, pointed to “a floor vote to follow in early summer.” Prediction markets reflect cautious optimism: Polymarket traders placed a 69% probability on the Clarity Act becoming law in 2026, while Kalshi users saw similar odds.
The broader crypto market also reacted positively, with bitcoin briefly surpassing $82,000. Shares of other crypto-related companies, including Circle Internet Group and Robinhood, saw increased retail interest on Stocktwits. However, Robinhood also fell short of quarterly expectations due to weaker crypto trading volumes.
Coinbase has been working to diversify its revenue streams beyond trading fees. The company reported its share of crypto trading volume rose to 8.6%, with derivatives volume surging 169% year-over-year. In March, annualized revenue from prediction markets reached $100 million. Chief Financial Officer Alesia Haas acknowledged a “softer” market environment but maintained that the company’s fundamentals remain solid.
Despite the committee vote, the bill’s path to enactment remains uncertain. TD Cowen’s Washington Research Group estimates only a 30% chance of Senate passage this year, citing ongoing disputes over illicit-finance controls, ethics provisions, and stablecoin regulation. For Coinbase shareholders, Thursday’s rally reflects renewed optimism, but the real test lies ahead on the Senate floor.
