Coinbase Global Inc. (COIN) has recently experienced significant developments that have impacted its operations and market position.
SEC Lawsuit Dismissal
In a notable legal victory, the U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against Coinbase, which had accused the cryptocurrency exchange of operating unlawfully. This decision, pending commission approval, reflects a shift towards a more crypto-friendly regulatory environment under President Donald Trump’s administration. Coinbase’s CEO, Brian Armstrong, expressed vindication and emphasized the need for clear legislation to prevent regulatory overreach and ensure continued innovation in the U.S.
Accounting Practices and Asset Ownership
Coinbase has revised its accounting treatment of customer-owned digital assets, removing them from its balance sheet. This change follows the SEC’s rescission of a 2022 bulletin and raises questions about asset ownership in bankruptcy scenarios. Despite the adjustment, Coinbase maintains that in the event of bankruptcy, customers might be treated as unsecured creditors, a stance influenced by past court rulings in other platform bankruptcies.
Political Engagement and Regulatory Influence
The company’s political engagement has also been highlighted, with reports suggesting that increased political spending has led to legal victories and added billions in value. This strategy underscores the importance of regulatory clarity and favorable legislation for the cryptocurrency industry’s growth and stability.
Financial Performance
On the financial front, Coinbase reported a net income of $1.29 billion in the fourth quarter of 2024, with net revenue of $2.2 billion, surpassing industry estimates. These figures reflect the company’s robust performance amid a dynamic regulatory landscape.
Stock Performance
As of February 22, 2025, Coinbase’s stock (COIN) is trading at $235.38, experiencing a decrease of $21.19 from the previous close. The stock’s intraday high was $270.86
