SEC agrees to reach a $150,000 settlement with Coinbase, Coinbase shares rise 10%

Coinbase's share price rises on progress of the Clarification Act and SEC settlement

Coinbase's share price rises sharply as investors respond positively to the progress of the new version of the Clarification Act and a settlement agreement reached between the company and the SEC over transparency disputes.

The Clarification Act pushed COIN shares higher

Coinbase shares rose about 11% to close at $175.85. It was previously reported that the White House and Senate Republicans had reached an agreement on the wording of the ethics clause in the Clarification Act. The rally added approximately $4.2 billion to Coinbase's market value during trading hours. COIN also outperformed Bitcoin (which rose about 1.8%), showing that investors are more concerned about regulatory developments than cryptocurrency prices. However, as of press time, COIN shares fell 1.78% to $173.

The Clarification Act has been passed by the U.S. House of Representatives. But the bill still needs enough support in the Senate to break the 60-vote threshold before it can move forward. Investors see the latest agreement as a sign that U.S. digital asset rules may be moving towards clearer clarity. Coinbase and other cryptocurrency-related stocks rallied as the market prices a clearer regulatory outlook.

Galaxy Digital, Robinhood, Circle Internet Group and Strategy also posted gains in the day's trading. Coinbase ranks among the top gainers among listed cryptocurrency-related companies.

SEC settlement agreement strengthens transparency requirements

Coinbase also reached a separate settlement agreement with the U.S. Securities and Exchange Commission over a Freedom of Information Act dispute. The agreement includes a $150,000 payment from the SEC and a commitment to improve record-keeping mechanisms. Paul Grewal, chief legal officer of Coinbase, said the case revealed that the SEC lost nearly a year's communications records of senior officials during its cryptocurrency enforcement operations. He sees the case as part of a broader effort to promote government transparency.

Grewal pointed out that the SEC blamed a process that "automatically wipes" certain data. He criticized the explanation because the agency had fined financial companies for similar record-keeping failures. Prior to the dispute, Coinbase filed a FOIA lawsuit against the Federal Deposit Insurance Corporation. In that case, Coinbase said it obtained documents showing that the FDIC privately told banks to suspend cryptocurrency-related businesses in 2022.

Grewal also quoted Rep. Maxine Waters on bank access. "I don't think the bank accounts of U.S. citizens should be closed for no reason and no one has told them why," Waters said. Coinbase believes that cryptocurrency companies and their customers should not lose banking services without clear reasons or appeals procedures. Grewal said the issue goes beyond the scope of cryptocurrencies and concerns fair treatment under government rules.

stablecoins and earnings remain key drivers

Coinbase has expanded beyond transaction fees, so regulatory policies around stablecoins have become particularly important. In the first quarter, trading revenue reached approximately $755.8 million, accounting for 56% of total net income. During the same period, subscription and services revenue was $583.5 million. Stabilocin-related revenue contributed more than $305 million, giving investors another reason to focus on policy changes.

The current Senate proposal would limit rewards for idle stablecoin balances, but still allow transaction-based incentives and require digital goods platforms to meet stricter anti-money laundering standards. Coinbase is also preparing tokenized stocks through its Base ecosystem. Base founder Jesse Pollak recently said that the company is about to launch a 1:1 physically backed tokenized stock. The product will expand Coinbase's role beyond cryptocurrency trading. The exchange is working to become a broader digital financial platform covering stablecoins, tokenized assets and regulated cryptocurrency markets.