Just under a year ago, the U.S. House of Representatives addressed the «Clarity Act» for the first time. The 257-page piece of legislation is intended to regulate cryptocurrencies and thereby lift the sector out of its legal grey area. However, the initiative launched by the Trump administration is currently on hold. Traditional banks had opposed allowing crypto companies to offer yields and other incentives on stablecoins in the future. Their argument: If digital currencies were to bear interest, customers could withdraw funds from traditional deposits, making lending more difficult. Now, a compromise is reportedly being reached in Washington, D.C. According to this, service providers may not offer payments comparable to traditional interest on stablecoins. However, they may be allowed to distribute rewards based on the actual usage of their platforms and networks.
Even though the details are not yet known, the sector regained ground on Wall Street following this news. This also applies to Coinbase: In the first two trading days of May, the market capitalisation of the largest U.S. crypto exchange expanded by nearly 9%. A lot is at stake for the company. In 2025, Coinbase generated nearly USD 1.35 billion from stablecoins. This means that the volume of services included in the «Subscription and Services» segment has more than quintupled within three years. Against this backdrop, it is hardly surprising that Coinbase’s top management, led by CEO and co-founder Brian Armstrong, is actively advocating for the «Clarity Act» in Congress.
In addition to regulatory developments, the recent slowdown in the crypto market is weighing on the company. Bitcoin, the most important representative of the segment, reached an all-time high of around USD 126,000 last October. Currently, the leading cryptocurrency is trading more than one-third below that peak. In line with this, Coinbase’s revenue declined in the fourth quarter of 2026. Management, however, remains unfazed by this setback. “The crypto market is subject to fluctuations, and experience teaches us that it is never as good or as bad as it seems,” the executives wrote in a letter to investors. In the background, technological transformation and the adoption of crypto products continue to advance. “We are seizing this opportunity,” Coinbase stated. This optimism is underscored by the company’s billion-dollar share and debt buyback programme.
On Thursday, 7 May, investors will learn how business performed in the first three months of the year. Coinbase will release its figures after the market closes in New York, followed by a conference call with CEO Armstrong. In addition to results and outlook, the status of the «Clarity Act» is also likely to be a topic of discussion. For investors hesitant to make a direct investment in the volatile Nasdaq-listed stock, a new issuance by Leonteq could be of interest. The Zurich-based fintech has launched soft-callable barrier reverse convertibles on Coinbase. In CHF, the coupon amounts to 15.6% p.a. A USD-denominated counterpart offers quarterly payouts of 20% p.a. Meanwhile, repayment of the nominal amount is linked to a barrier set at a low 49% of the initial level. Due to the European structure of these BRCs, the protection barrier is only activated at final fixing. At that point, the underlying must trade above the barrier. Until the maturity date in 15 months, Coinbase has full “freedom of movement,” meaning the price path is not relevant for redemption. However, if the crypto stock is at or below the barrier at maturity, the partial protection expires and investors may incur losses.
Naturally, Coinbase is also included in the range of leverage products. Leonteq offers mini-futures, knock-out warrants, as well as warrants on this underlying. These instruments allow for short-term positioning on both the long and the short side - either before or after the earnings release.
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