Coinbase (COIN) bulls point to crypto legislation and stablecoins after earnings miss
Coinbase‘s (COIN) weak first-quarter earnings report sparked another divide on Wall Street over whether the crypto platform is building a more durable business or remains tied to crypto’s boom-and-bust cycles. Several analysts lowered forecasts after the company missed expectations on revenue and adjusted EBITDA as trading activity slowed across the crypto market. Still, a number of firms argued Coinbase‘s expanding stablecoin and derivatives businesses — along with the possible passage of crypto legislation in Washington — could improve the company’s outlook later this year. JPMorgan said the quarter reflected “a challenging environment” but added that Coinbase had “positioned the company well to operate in an increasingly digital world.” The bank said pending U.S. crypto legislation “does set up for a better outlook into 2H26 and into 2027” and maintained an overweight rating on the stock. The legislation in focus is the CLARITY Act, a proposed market structure bill that would establish rules for how crypto assets are regulated in the U.S. The bill aims to define which digital assets fall under the Securities and Exchange Commission (SEC) and which would be overseen by the Commodity Futures Trading Commission (CFTC). Coinbase and other crypto firms have argued clearer rules could encourage banks, asset managers and