Coinbase Global (NASDAQ: COIN) shares declined approximately 1.7% in after-hours trading on January 23, 2026, closing at $223.14. The drop reflects investor anxiety over potential U.S. regulatory changes targeting stablecoin reward programs and broader market pressures.
The immediate catalyst is an upcoming Senate Agriculture Committee markup session scheduled for January 27, 2026. The committee, chaired by John Boozman, will review the Digital Commodity Intermediaries Act, legislation that would expand the Commodity Futures Trading Commission's (CFTC) oversight to include digital commodities like stablecoins. Stricter rules could directly challenge Coinbase's revenue streams, which heavily rely on stablecoin-related staking rewards and lending products.
Concurrently, analyst downgrades have pressured the stock. Analysts cite projected revenue shortfalls, with expectations of a 4% miss for Q4 2025, driven by declines in trading, subscription services, and stablecoin revenue. Technical glitches on Coinbase's Base network have also undermined platform reliability, adding to investor concerns.
The broader crypto market weakness contributed to the sell-off. Bitcoin hovered near $89,772 and Ether around $2,962, both under downward pressure. Global macroeconomic uncertainties, including U.S. tariff threats, further unsettled markets.
Despite the headwinds, Coinbase continues to bolster its institutional offerings. Its Prime platform now supports deeper liquidity and programmatic staking options. The company has also formed a quantum computing advisory board to assess long-term cryptography risks. Coinbase is scheduled to release its Q4 and full-year 2025 earnings on February 12, 2026, which will provide further insight into its financial health.
