Coinbase bulls bet on stablecoins and U.S. crypto legislation after Q1 earnings miss!

Coinbase's weaker-than-expected first-quarter results — missing on both revenue and adjusted EBITDA as trading activity slowed — have deepened a Wall Street split over the company's long-term direction. Shares fell 3.6% in pre-market trading, but several major firms held their constructive stance.

JPMorgan maintained an Overweight rating, calling the quarter a "challenging environment" while arguing that pending U.S. crypto legislation "sets up for a better outlook into 2H26 and into 2027." The legislation in focus is the CLARITY Act, a market structure bill that would define which digital assets fall under the SEC versus the CFTC. Coinbase executives told analysts they expect a Senate Banking Committee markup this month, with a broader vote later in the summer.

Bulls also pointed to traction in newer business lines: prediction markets crossed $100 million in annualized revenue by…