Is Coinbase close to a US Crypto policy breakthrough?

Coinbase CEO Brian Armstrong said he remains confident that an agreement can be reached on the US crypto market structure legislation. This comes in when there are divisions between banks and digital-asset firms, which continue to stall progress in Washington.

In a post on X, Armstrong mentioned that the company is working toward a “win-win” outcome that advances President Donald Trump’s crypto agenda while addressing concerns raised by traditional lenders. “We’re all in,” he wrote, adding that Coinbase was among the first to advocate for what’s best for crypto users.

The US’s biggest crypto exchange is facing uncertain market conditions. COIN price dipped by almost 8% in the last trading session. It ended the day trading at $141.09.

White House talks continue

Armstrong in a post highlighted that the GENIUS Act, which was passed six months ago, is now being “re-litigated” in Congress. He warned that renewed debate over stablecoin provisions (including potential limits on rewards) has deeply impacted their customers.

Coinbase representatives attended recent White House meetings. It was aimed at resolving a months-long impasse between crypto firms and large US banks. Armstrong said the industry remains aligned and that discussions are moving toward an agreement involving the White House, banks and crypto companies.

Chief legal officer Paul Grewal echoed that view. He stated that after a meeting in the Eisenhower Office Building, the administration is committed to finding solutions that benefit American consumers. However, talks so far have not produced a breakthrough and he seems quite sure that they can do this.

The push for legal clarity comes at a difficult moment for Coinbase. The company posted a surprise quarterly loss on Thursday as weaker trading volumes weighed on revenue d. It’s the exchange’s first since the third quarter of 2023. Coinbase reported a net loss of $666.7 million, or $2.49 per share, for the quarter ended Dec. 31. Data shows that its transaction revenue fell to $982.7 million from $1.56 billion a year earlier. The drop was basically driven by 45% dump in consumer trading revenue.

Coinbase struggles as Bitcoin halves

The crypto market crushed the bulls’ hope in the final months of 2025 after President Trump imposed new tariffs on Chinese imports. His actions signaled possible export controls on critical software. Bitcoin price has Bitcoin has nearly halved from its October peak. Bitcoin price is trading at an average price of $66,544 at the press time. BTC ETFs are bleeding too. These funds saw almost $3.5 billion withdrawn in November, $1.09 billion in December and more than $1.6 billion in January.

Coinbase said in its shareholder letter that crypto markets are cyclical and that conditions can shift quickly. Shares were up modestly in extended trading after earnings but remain down nearly 40% this year.

At the same time, regulators are expanding engagement with the sector. The Commodity Futures Trading Commission (CFTC) recently announced a new Innovation Advisory Committee. The team is built to help shape policy on emerging technologies such as blockchain and artificial intelligence in financial markets.

Members include executives from major crypto firms and traditional financial institutions. Participants span companies such as Ripple, Coinbase, Kraken, Gemini, Uniswap Labs, Chainlink Labs, Solana Labs, Crypto.com, Nasdaq and CME Group.

The global digital assets continue to trade in the “Extreme Fear.” The cumulative crypto market cap dropped marginally over the last 24 hours to stand at $2.28 trillion. Its 24 hour trading volume dipped by 7% to hover around $102 billion.