New York, January 20, 2026, 18:41 ET — After-hours
- Coinbase shares dropped 5.5% in after-hours trading, following a roughly 4.6% decline in bitcoin.
- CEO Brian Armstrong insists there remains a viable path forward for U.S. crypto legislation
- Bermuda’s push for an “onchain economy” and tokenized stocks is drawing increased regulatory scrutiny
Shares of Coinbase Global Inc (COIN.O) dropped 5.5% to $227.73 in after-hours trading Tuesday, following a 4.6% plunge in bitcoin to roughly $88,312, weighing on crypto-related stocks. Robinhood Markets (HOOD.O) slipped 2.7%, while Strategy (MSTR.O) plunged 7.8% in late deals.
The decline comes as investors wrestle with two shifting factors: the volatile crypto market and evolving U.S. regulations that will shape which products exchanges can provide. Coinbase’s revenue remains closely tied to trading volumes, which track coin prices more than any corporate messaging.
Speaking at the World Economic Forum in Davos, Coinbase CEO Brian Armstrong expressed continued optimism about the prospects for a broad U.S. crypto market-structure bill, despite Coinbase withdrawing support for a recent draft. Armstrong said he didn’t see “any real barriers” ahead, while criticizing what he described as “too many giveaways to tradfi” — a term for traditional finance — as the debate over stablecoin “rewards” reignites. (Investing)
The battle hits hard because “rewards” are basically interest-like payments that some platforms give users who hold stablecoins, which generally aim to stay pegged to $1. Last week, the Senate Banking Committee pushed back a scheduled discussion of a draft bill after Armstrong said Coinbase couldn’t support it as it stands. The draft would limit interest paid just for holding stablecoins but still allow certain activity-based incentives, according to a Reuters report. (Reuters)
On Monday, the Government of Bermuda announced plans to create what it dubbed the world’s first “fully onchain” national economy, with digital-asset infrastructure and tools supplied by Circle and Coinbase, according to a Circle statement from Davos. Armstrong highlighted Bermuda’s model as proof of what clear rules combined with public-private collaboration can achieve, while Circle CEO Jeremy Allaire described it as a “responsible” use of blockchain at a national level. (Circle)
Intercontinental Exchange, which owns the New York Stock Exchange, is joining the crowded race into tokenized assets. It unveiled a platform designed for 24/7 trading and on-chain settlement of tokenized securities, aiming to secure regulatory approval. The system will include stablecoin-based funding. Duke University finance professor Campbell Harvey weighed in, saying “Tokenization is not a fad,” and described tokenized stocks as “the lowest hanging fruit.” (Reuters)
Tuesday’s session took on a risk-off tone following new tariff threats from U.S. President Donald Trump, which unsettled markets and pushed investors toward safe havens, according to a Reuters report. Crypto, known for its high-beta moves during such episodes, often sees Coinbase track those swings closely. (Reuters)
For Coinbase, the immediate picture is straightforward, though the political landscape is anything but. Falling coin prices tend to dampen retail trading and squeeze transaction revenue. Yet volatile swings can boost volumes if traders jump back in. The policy side is crucial since stablecoin rules, tokenized stocks, and broader “everything exchange” goals all hinge on what regulators permit—and the timing of those decisions.
There’s a clear risk here. Should bitcoin’s decline worsen and crypto discussions in Washington hit a wall, Coinbase might see a drop in activity without any easing of regulations. Its efforts on tokenization could then be stuck in limbo, awaiting approvals that drag on longer than investors are willing to tolerate.
Coinbase will report its fourth-quarter and full-year 2025 results on February 12, after markets close. The company plans a webcast at 5:30 p.m. ET, according to an announcement. (Coinbase)
