Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong said on Thursday that he’s optimistic about the CLARITY Act’s prospects, but stressed it would be "business as usual" for the company even if the legislation fails to pass.
‘Coinbase Would Be Fine’
During the company’s second-quarter earnings call, Armstrong was asked what Coinbase’s prospects would look like if the key cryptocurrency legislation didn’t pass before the August recess.
“I think in that world, it’s actually kind of just business as usual for Coinbase, for a few reasons,” he replied. “I think Coinbase would be fine.”
Armstrong stated that Coinbase already adheres to many “good” practices that the Clarity Act would mandate.
Armstrong Pins Hopes on SEC, CFTC
He also pointed out that the heads of the SEC and the CFTC, Chair Paul Atkins and Michael Selig, respectively, have publicly expressed their readiness to enact clear rules, irrespective of the legislation’s fate.
“I think they’re in a bit of a holding pattern, waiting to see what happens with CLARITY, and if it doesn’t go through for some reason, then they would come out with their own rules,” the cryptocurrency billionaire said.
That said, Armstrong remained optimistic that the bill would go to a full Senate floor vote.
“Having a deadline or a forcing function with this August recess for the Senate is actually a good thing. It tends to get people to the table at the last minute,” he said.
The Senate heads into recess on Aug. 7. If the bill does not clear before then, September becomes the next realistic window, and a failed September vote likely pushes it past the midterms entirely.
JPMorgan analysts put CLARITY Act passage odds at just 37%, while Polymarket bettors assign a 31% chance.
COIN Stock Falls After Double Miss
Coinbase reported total revenue of $1.22 billion in the second quarter, missing the Street consensus estimate of $1.32 billion.
The company posted a loss of 40 cents per share, wider than the analyst’s expected loss of 11 cents. Transaction revenue fell 21% year-over-year to was $599 million.
Price Action: Coinbase shares plunged 5.12% in after-hours trading after closing 2.18% higher at $163.58 during Thursday’s regular trading session, according to data from Benzinga Pro. Year-to-date, the stock has fallen 27%.
The COIN stock maintains a weaker price trend in the short, medium, and long term, according to Benzinga’s Edge Stock Rankings.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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