Coinbase Rallies 6.85% As CEO Warns Senate: Don’t Kill Crypto To Save Banks

Core Insights - Following the Federal Reserve's rate cut, Coinbase's shares increased by 6.85%, reaching a market value of $85.81 billion [1] - The overall cryptocurrency market experienced a 2.5% increase, bringing its total value to $3.86 trillion [1] - BlackRock's significant investment of $206 million in ETH and $38 million in BTC into Coinbase Prime contributed to the rally [2] Company Performance - Coinbase's shares have gained 28.4% this year, but are still 21.3% below the July 2025 peak of $419.78, currently trading at $330.23 [2] - On September 29, 2025, Coinbase's shares reached a high of $334.38 before closing at $333.99 [1] Regulatory Environment - Brian Armstrong, CEO of Coinbase, met with lawmakers to advocate for clearer regulations regarding stablecoins, criticizing traditional financial institutions for lobbying against crypto rewards [3][4] - The U.S. Senate is reviewing significant crypto legislation, including the Digital Asset Market Structure and Investor Protection Act, which aims to clarify regulatory oversight of digital assets [4] Market Dynamics - Armstrong expressed optimism about the establishment of clear rules for the crypto market, highlighting concerns over traditional banks attempting to undermine crypto rewards [5] - The banking lobby is reportedly targeting stablecoin rewards, fearing that these could lead to a significant migration of funds from traditional banks to stablecoins, with a Treasury report suggesting up to $6.6 trillion could shift [6][7]