Cryptocurrency-linked equities suffered a sharp sell-off on June 28, underperforming major technology stocks as the European Union advanced a new regulatory push targeting decentralized finance (DeFi), non-fungible tokens (NFTs), and staking activities. Coinbase and Circle shares have plunged 69% and 72% from their record highs, respectively, according to The Kobeissi Letter, while the S&P 500 index slipped only 3.5% from its recent peak. The divergence underscored how investors increasingly treat crypto stocks as higher-risk bets amid falling digital asset prices.
Bitcoin’s decline below $60,000—extending its drawdown to over 54% from its October peak—and Ether’s slide toward $1,500 deepened market gloom. The broader crypto market cap fell more than 36% year-over-year, and the altcoin complex sits roughly 45% below its October 2025 high. Coinbase’s first-quarter revenue missed Wall Street expectations, with transaction revenue dropping 40% to $756 million, while Circle’s stablecoin economics remained tied to reserve yields and USDC circulation, which stood at $73.6 billion as of June 25.
The European Parliament’s economic affairs committee adopted an own-initiative resolution calling on the European Commission to assess whether the Markets in Crypto-Assets (MiCA) framework should be expanded to cover DeFi, staking, NFTs, and lending/borrowing services. The report, drafted by Belgian lawmaker Johan Van Overtveldt, also encourages wider tokenization and supports euro-denominated stablecoins. Although the resolution would not create immediate legal obligations, a plenary vote is scheduled for July 7, and investors are already pricing in potential compliance costs, particularly for exchanges and stablecoin issuers.
Meanwhile, Securitize announced it expects to raise $400 million through its public listing via a merger with Cantor Equity Partners II, with fewer shareholder redemptions than anticipated. The tokenized securities firm plans to trade under the ticker SECZ on the New York Stock Exchange, offering a test of institutional demand for regulated crypto infrastructure at a time when pure-play token bets falter.
ARK Invest, led by Cathie Wood, bought approximately $5.4 million in crypto-linked equities on June 25, including $3.27 million in Robinhood, $1.28 million in Coinbase, $637,455 in Circle, and $199,895 in Bullish, even as all four stocks traded lower. This move suggests a growing view that the next crypto recovery may favor companies that monetize trading volumes, custody, derivatives, and stablecoin flows—rather than the tokens themselves. Proponents argue that transaction revenue and earnings estimates can reset faster than token narratives form, while skeptics note that prolonged low activity would keep these businesses operating well below capacity.
