Coinbase Rides the Wave of U.S. Regulatory Advantage: Stock Tokenization, Expansion Plans, and Merger Rumors Surface

Original Article Title: "Coinbase Hitches a Ride on US Regulatory 'Bandwagon': White House Summit VIP Treatment, Tokenized Stocks, Expansion, and Acquisition Rumors"

Original Article Author: Weilin, PANews

Under the adjustment of the cryptocurrency regulation policy in the Trump administration, significant changes are taking place in the US cryptocurrency market, and as a leading domestic exchange platform in the US, Coinbase is facing a series of new developments.

From the easing regulatory environment to the expansion of the company's business, Coinbase has been making frequent moves recently. In February, the Securities and Exchange Commission (SEC) dismissed the lawsuit against the company, marking a phased end to the US regulators' tough enforcement in the cryptocurrency market. Meanwhile, at the White House Digital Asset Summit, Coinbase CEO Brian Armstrong enjoyed "VIP" treatment, further demonstrating the company's lobbying influence in Washington.

At the same time, Coinbase plans to expand its workforce by about 1000 employees in the US by 2025 and restart its COIN stock tokenization plan. There are also rumors in the market that the company may be subject to acquisition and become a potential target for acquisition by traditional exchange platforms.

White House Summit: Coinbase CEO Receives "VIP" Treatment, Plans to Hire 1000 People in the US

After Trump's reelection, the first White House Digital Asset Summit in the US became a focus of attention for the cryptocurrency industry, and Coinbase CEO Brian Armstrong was undoubtedly one of the most prominent executives at the summit. As a representative of a cryptocurrency exchange platform, Armstrong sat in the fourth position to the left of Trump, showcasing his influence among the attending representatives at the summit.

On the day before the summit, Trump signed an executive order announcing the establishment of a strategic Bitcoin reserve and digital asset reserve. Armstrong later said in a media interview that he would "absolutely" be willing to serve as the government's cryptocurrency asset custodian in the context of national reserves, adding that the company has already collaborated with multiple government departments on cryptocurrency asset custody and trading.

Coinbase's performance has also been impressive. The full-year revenue in 2024 more than doubled, reaching $65.64 billion, with a net income of $26 billion. In the fourth quarter alone, revenue was $22.7 billion, an 88% increase from the previous quarter.

After the White House summit, Armstrong tweeted that the White House Digital Asset Summit was a historic day, as the US now has a strategic Bitcoin reserve and emerging regulatory clarity. This directly translates into economic growth in the US. Given this new growth, Coinbase plans to recruit around 1000 employees in the US this year, and will continue to build in the US to ensure the country maintains its leading position in technology and finance. As of 2024, Coinbase had 3772 employees, and this expansion is expected to further solidify its market position.

SEC Dismisses Lawsuit Against Coinbase, Major Regulatory Hurdle Cleared

Despite Coinbase's successful listing on Nasdaq as early as 2021, its development has been hampered by SEC regulatory resistance over the past few years. On March 22, 2023, Coinbase received a Wells notice from the U.S. Securities and Exchange Commission (SEC), indicating that the SEC planned to take enforcement action against Coinbase's staking products. Coinbase subsequently responded, calling the investigation "hasty," and stating that it would continue to operate as usual. The following month, Coinbase sued the SEC, seeking a federal court order to compel the SEC to respond to Coinbase's petition from the previous year, which requested clarity on cryptocurrency-related regulations.

In June 2023, the SEC announced a lawsuit against Coinbase, accusing it of acting as an unregistered broker, trading platform, and clearing agency since 2019, and demanded a "permanent injunction" against related operations. Additionally, the SEC alleged that Coinbase failed to register its staking service as required by U.S. securities laws.

However, with the change in senior SEC personnel under the Trump administration, in February 2025, the SEC dismissed the lawsuit against Coinbase, ending the legal disputes between the two parties, and paving the way for Coinbase's future business development with fewer obstacles.

Coinbase Resumes Tokenized COIN Stock Plan, Adjusts Listing Mechanism

The changing U.S. regulatory environment has brought new market opportunities for Coinbase. On March 6, there were market reports that Coinbase is rekindling its efforts to tokenize its COIN stock, as part of a broader initiative to introduce security tokens into the U.S. market. The company had first attempted this move in 2020 but abandoned it due to regulatory hurdles. With the establishment of the SEC's new cryptocurrency special workgroup, the company sees a new opportunity to integrate blockchain-based securities into traditional finance. Coinbase's CFO Alesia Haas expressed optimism about regulatory progress at the Morgan Stanley TMT Conference.

Haas stated, "I now believe our U.S. regulators are seeking product innovation and want to move things forward." Haas revealed that Coinbase initially planned to list 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 24/7.

On March 10, according to an official announcement from Backed, the tokenized version of Coinbase's stock, $COIN, named $wbCOIN, has been launched on the Base network. This 1:1 token is backed by $COIN stock, freely transferable, and entitles holders to a legitimate claim on the value of $COIN stock. However, Backed emphasizes 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 crypto 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 one million each week—the manual review process at Coinbase is no longer sustainable. "Evaluating each one is no longer feasible," he wrote, adding that even regulatory bodies cannot keep up with the pace of new asset creation. This mechanism is essentially similar to Twitter's "community notes" system but tailored to the cryptocurrency industry.

Acquisition Rumors: Coinbase Seen as Top Exchange Acquisition Target

In addition to business expansion and regulatory breakthroughs, Coinbase is also seen by the market as a potential acquisition target. On March 8, according to Barron's, Coinbase possesses the conditions to be an acquisition target. If it were to merge with a traditional exchange platform, it could create a company with both expertise and industry influence, thereby gaining a dominant position in the current fragmented cryptocurrency market. Currently, Coinbase has a P/E ratio of about 22x, with a total market cap of around $52 billion, but a large U.S. exchange platform could make this deal a reality.

The parent company of the New York Stock Exchange—Intercontinental Exchange (ICE)—has a market cap of up to $100 billion, with a P/E ratio of 36x. Its CEO, Jeffrey Sprecher, is married to Kelly Loeffler, a former member of the Trump administration. The global futures trading giant Chicago Mercantile Exchange Group (CME Group) has a market cap of $93 billion with a P/E ratio of 26x. Nasdaq Exchange is known for its technological prowess and global network, with a market cap of $47 billion and a P/E ratio of 41x. By partnering with major U.S. exchange platforms, Coinbase could unlock access to power and market, resources that may currently be out of reach. Large investors may drive the acquisition of Coinbase by a top exchange platform, enabling the new company to maximize investment returns as cryptocurrency gradually moves from the financial frontier to the mainstream.

Now, with the Trump administration's cryptocurrency policy adjustments, the regulatory environment of the cryptocurrency industry has undergone a dramatic change, and Coinbase is a direct beneficiary of this change. The White House summit, SEC lawsuit dismissal, tokenized stock plan relaunch, and potential acquisition rumors all signal that this globally leading cryptocurrency exchange platform may be entering a new growth stage, opening up room for imagination in its future development.

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