Coinbase Global (COIN) shares surged 8.6% to $342.20 in Sunday pre-market trading after the Senate Banking Committee Saturday formally withdrew the contested Crypto Custody Reform Act (CCRA), removing the last major regulatory overhang for U.S. exchanges and clearing the path for stablecoin and market structure legislation expected in May.
The CCRA, championed by Senator Elizabeth Warren and previously seen as a path to forcing exchanges into traditional bank-style custody arrangements, had drawn opposition from a bipartisan coalition led by Senators Tim Scott (R-SC) and Kirsten Gillibrand (D-NY). Sources familiar with negotiations told Reuters that the committee will instead advance the more industry-friendly Responsible Financial Innovation Act, with a markup vote expected May 7.
Sector-Wide Rally
Crypto-adjacent equities rallied broadly. Robinhood (HOOD) gained 5.4% in pre-market, MARA Holdings (MARA) added 11.2%, Riot Platforms (RIOT) climbed 9.8%, and Block (XYZ) rose 4.1%. The CoinShares Digital Economy ETF (DAGS) was indicated 6.7% higher. The KBW Bank Index, by contrast, gained just 0.6% as the regulatory pivot does not directly affect traditional banks but does open new fee competition fronts.
Coinbase's spot trading volumes rose to a record $98 billion in the past seven days, while custody assets reached $612 billion, helped by inflows tied to the U.S. spot Bitcoin ETF complex. The firm's next earnings release is set for May 7, with consensus calling for revenue of $2.42 billion and EPS of $1.84.