Coinbase (COIN), Robinhood (HOOD) Tumble As Senate Crypto Bill Stalls: What It Means For Both Stocks

Core Viewpoint - The recent turmoil surrounding a U.S. crypto market-structure bill has negatively impacted the stock prices of Coinbase Global Inc and Robinhood Markets Inc, raising concerns among investors about the future of crypto regulation in the U.S. [1][2] Group 1: Impact of the Draft Bill - Coinbase CEO Brian Armstrong criticized the latest Senate Banking Committee draft, stating it would effectively ban tokenized equities, impose extensive DeFi surveillance, and shift authority from the CFTC to the SEC, which he believes would harm the crypto market [2][7] - The Senate Banking Committee has paused the markup of the legislation, with Committee Chair Sen. Tim Scott indicating that discussions will continue, while industry leaders express disappointment over the legislative gridlock [3][5] - A Galaxy Research note suggests that the chances of a bipartisan bill being passed are only 25%, warning that failure could delay comprehensive regulation until 2027 [4] Group 2: Importance of the Bill for Coinbase - The market structure bill is critical for Coinbase as it will determine whether the company can operate under clear regulations or continue facing case-by-case enforcement challenges [6] - A more constructive version of the bill could clarify asset classifications, create licensed pathways for crypto exchanges, and reduce regulatory risks, potentially benefiting Coinbase's revenue streams [8] Group 3: Importance of the Bill for Robinhood - For Robinhood, the bill is essential for fully integrating crypto into its brokerage services, as a clear federal framework could harmonize regulations and allow for compliant pathways for staking and tokenized equities [9] - Robinhood CEO Vlad Tenev criticized the legislative gridlock, emphasizing the need for rules that protect consumers and foster innovation [5] Group 4: Stock Performance - On Thursday, Coinbase shares closed down 6.48% at $240.65, while Robinhood shares fell 7.79% to $111.97, although both companies saw slight recoveries in after-hours trading [13]