Tokenized stocks, expansion, and merger rumors.
Written by: Weilin, PANews
Under the adjustment of the Trump administration's cryptocurrency regulatory policies, the landscape of the U.S. cryptocurrency market is undergoing significant changes, and Coinbase, as a leading domestic exchange, is facing a series of new developments.
From the easing of the regulatory environment to the expansion of company operations, Coinbase has been very active recently. In February, the Securities and Exchange Commission (SEC) withdrew its lawsuit against the company, marking a phase of the end of strict enforcement by U.S. regulators in the cryptocurrency market. At the White House Digital Assets Summit, Coinbase CEO Brian Armstrong enjoyed "VIP" treatment, further highlighting the company's lobbying influence in Washington.
Meanwhile, Coinbase plans to expand its workforce in the U.S. by about 1,000 employees by 2025 and restart its COIN stock tokenization plan. There are also rumors in the market that the company may be a potential target for acquisition by traditional exchanges.
White House Summit: Coinbase CEO Enjoys "VIP" Treatment, Plans to Hire 1,000 in the U.S.
The first White House Digital Assets Summit after Trump's re-election became a focal point for the cryptocurrency industry, and Coinbase CEO Brian Armstrong was undoubtedly one of the most prominent executives at the summit. As a representative of cryptocurrency exchanges, Armstrong sat in the fourth position to Trump's left, showcasing his influence among the attendees.
The day before the summit, Trump signed an executive order announcing the establishment of a strategic Bitcoin reserve and digital asset reserve. Armstrong later stated in a media interview that he is "absolutely" willing to serve as the government's custodian of crypto assets in the context of national reserves, adding that the company has already collaborated with several government departments on crypto asset custody and trading.
Coinbase's performance is also impressive. In 2024, its annual revenue grew more than double to $6.564 billion, with a net income of $2.6 billion. In the fourth quarter, revenue reached $2.27 billion, an 88% quarter-over-quarter increase.
After the White House summit, Armstrong tweeted that the summit was a historic day, with the U.S. now having a strategic Bitcoin reserve and emerging regulatory clarity. This directly translates into economic growth for the U.S. Given this new growth, Coinbase plans to hire about 1,000 employees in the U.S. this year and will continue to build in the U.S. to ensure that the country remains a leader in technology and finance. As of 2024, Coinbase has 3,772 employees, and this expansion is expected to further solidify its market position.
SEC Withdraws Lawsuit Against Coinbase, Major Regulatory Hurdle Removed
Although Coinbase successfully went public on NASDAQ in 2021, its development has faced regulatory hurdles from the SEC over the past few years. On March 22, 2023, Coinbase received a Wells notice from the SEC, indicating that the SEC planned to take enforcement action against Coinbase's staking products. Coinbase subsequently responded that the investigation was "hasty" and stated it would continue normal operations. The following month, Coinbase sued the SEC, requesting a federal court to compel the SEC to respond to Coinbase's petition from the previous year, which sought clarity on cryptocurrency-related regulations.
In June 2023, the SEC announced it was suing Coinbase, accusing it of acting as an unregistered broker, exchange, and clearing agency since 2019, and sought to "permanently ban" Coinbase from related operations. Additionally, the SEC accused Coinbase of failing to register its staking services as required by U.S. securities laws.
However, after the Trump administration took office, there were personnel changes at the SEC. In February 2025, the SEC withdrew its lawsuit against Coinbase, ending the legal dispute between the two parties and removing many obstacles to Coinbase's future business development.
Coinbase Restarts COIN Stock Tokenization Plan, Adjusts Listing Mechanism
The changes in the U.S. regulatory environment have brought new market opportunities for Coinbase. On March 6, market news indicated that Coinbase is pushing to reintroduce the tokenization of its COIN stock as part of a broader effort to bring security tokens to the U.S. market. The company had initially attempted this initiative in 2020 but abandoned it due to regulatory hurdles. With the establishment of the SEC's newly formed cryptocurrency task force, the company sees new opportunities to integrate blockchain-based securities into traditional finance. Coinbase CFO Alesia Haas expressed optimism about regulatory progress at the Morgan Stanley TMT conference.
Haas stated, "I now believe that our U.S. regulators are seeking product innovation and want to move forward." She revealed that Coinbase initially planned to go public by issuing security tokens representing its COIN stock, aligning with its vision of integrating blockchain into traditional finance. Coinbase CEO Brian Armstrong emphasized the potential benefits of tokenized securities, stating that they could provide consumers with the ability to trade around the clock.
On March 10, according to an official announcement from Backed, the tokenized version of Coinbase stock, $COIN, called $wbCOIN, has launched on the Base network. This token is 1:1 backed by $COIN stock, is freely transferable, and has a legal claim to the value of $COIN stock. However, Backed emphasized that it is not affiliated with Coinbase and is only interested in the stock.
Meanwhile, Coinbase is adjusting its listing mechanism to adapt to the rapidly changing cryptocurrency market. CEO Brian Armstrong has proposed switching to a "blacklist" model, allowing users and automated scanning tools to filter out scam projects instead of pre-approving tokens.
Armstrong stated that due to the overwhelming number of new tokens—nearly a million each week—Coinbase's manual review process has become unsustainable. "Evaluating each one individually is no longer feasible," he wrote, adding that even regulators cannot keep up with the growth of new assets. This mechanism is essentially similar to Twitter's "Community Notes" system but applied to the cryptocurrency industry.
Merger Rumors: Coinbase May Become a Target for Top Exchanges
In addition to business expansion and regulatory breakthroughs, Coinbase is also seen as a potential acquisition target in the market. On March 8, Barrons reported that Coinbase has met the conditions to become an acquisition target, and if it merges with a traditional exchange, it could create a company with both expertise and industry influence, thereby dominating the currently fragmented cryptocurrency market. Currently, Coinbase has a price-to-earnings ratio of about 22 times and a total market capitalization of about $52 billion, but large U.S. exchanges have the capability to make this deal happen.
The parent company of the New York Stock Exchange—Intercontinental Exchange (ICE)—has a market capitalization of $100 billion and a price-to-earnings ratio of 36 times, and its CEO Jeffrey Sprecher's wife, Kelly Loeffler, is a member of Trump's cabinet. The global futures trading giant Chicago Mercantile Exchange Group (CME Group) has a market capitalization of $93 billion and a price-to-earnings ratio of 26 times. The NASDAQ exchange is known for its technological strength and global network, with a market capitalization of $47 billion and a price-to-earnings ratio of 41 times. If Coinbase can collaborate with major U.S. exchanges, it will open doors to power and market access, which may still be out of reach for it at present. Large investors may push for a top exchange to acquire Coinbase, allowing the new company to maximize investment returns as cryptocurrency gradually moves from the financial frontier to the mainstream.
It now appears that with the adjustment of the Trump administration's cryptocurrency policies, the regulatory environment for the cryptocurrency industry has undergone a dramatic change, and Coinbase is a direct beneficiary of this shift. The White House summit, the withdrawal of the SEC lawsuit, the restart of the stock tokenization plan, and potential merger rumors all indicate that this leading global cryptocurrency exchange may enter a new growth phase, opening up possibilities for future development.
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