The exchange posted $2.3 billion in revenue, which is an 88% QoQ increase, with net income reaching $1.3 billion. Trading volume jumped to $439 billion, and institutional revenue grew 155% to $141.3 million. Meanwhile, Trump’s administration is reshaping the crypto regulatory landscape by nominating Brian Quintenz to lead the CFTC and Jonathan Gould to head the OCC. Both are seen as crypto-friendly picks.
Coinbase Earnings Soar in Q4
Coinbase reported its strongest quarterly earnings in over a year, driven by a surge in crypto prices and trading activity after the election of US President Donald Trump. The company’s financial results for the fourth quarter were released on Feb. 13, and revealed total revenue of $2.3 billion, which was an 88% increase quarter-over-quarter.
Net income stood at $1.3 billion, which also surpassed analyst expectations. Trading volume surged to $439 billion, exceeding estimates of $404 billion, while consumer transaction revenue saw a 178% increase to $1.35 billion. Institutional revenue also grew by 155% over the same period to reach $141.3 million.
(Source: Coinbase)
The company attributed its year-over-year trading volume growth to heightened crypto asset volatility, particularly in the first and fourth quarters of 2024, alongside higher average crypto prices. Coinbase also recorded $225.9 million in stablecoin revenue and $214.9 million in blockchain rewards revenue. After the earnings announcement, Coinbase shares rose 8.44% to $298.1 during regular trading hours but experienced some volatility in after-hours trading by slipping 0.88% to $295.01, according to Google Finance data.
Coin Metrics projected that Coinbase’s revenue will more than double year-over-year, largely due to increased trading activity in the post-election market environment. They specifically pointed to the renewed optimism fueled by Trump’s pro-crypto stance and his commitment to making the United States a leading hub for the industry. The majority of trading volume, however, continues to stem from institutional participants, as retail investor activity stayed subdued. Data from crypto research firm Kaiko indicated that retail traders accounted for only 18% of Coinbase’s trading volume, down from 40% in 2021.
Despite its continued reliance on trading, Coinbase has made a lot of progress in expanding its revenue from subscriptions and services. The company is still primarily a trading platform, with trading activity still contributing over 50% of total revenue, according to Kaiko. However, analysts pointed to emerging growth in Coinbase’s subscription-based businesses.
Coinbase subscription revenue increasing: Kaiko)
The supply of the US dollar-pegged stablecoin USDC on the exchange grew by 23% in the fourth quarter, providing a tailwind for stablecoin-related revenue. At the same time, Coinbase’s Ethereum staking platform struggled with declining staking participation, and experienced a net outflow of close to 1.3 million ETH in Q4. A more favorable regulatory climate under Trump could provide long-term benefits for Coinbase’s staking business, according to industry researchers.
The exchange has faced a lot of regulatory scrutiny from the SEC but may see relief under the new administration. Analysts at Morningstar see the election results as a positive development for the firm. Looking ahead, Coinbase is also pushing forward with its international expansion plans. The company is currently in discussions with Indian regulators about a potential return to the market after stopping operations in the country in 2023.
Brian Quintenz Accepts Trump’s CFTC Nomination
Trump is not only the cause of major changes on crypto exchanges, he is also planning on changing the crypto industry as a whole. Brian Quintenz, US President Donald Trump’s nominee to lead the Commodity Futures Trading Commission (CFTC), announced his nomination on the Web3 social media platform Farcaster. Quintenz’ nomination could be the start of a major shift in the agency’s stance on cryptocurrency regulation.
Quintenz currently serves as head of policy for the Web3 venture firm a16z Crypto, and stated on Feb. 12 that he was accepting Trump’s nomination to lead the CFTC. This is the second most powerful financial regulator in the United States after the Securities and Exchange Commission (SEC).
His announcement is part of the sharp departure from the regulatory approach under former US President Joe Biden, whose administration pursued more than 100 lawsuits against crypto firms for alleged legal violations. After Trump’s administration took over on Jan. 20, the tone towards cryptocurrency seems to be shifting. Quintenz shared in his post that the CFTC is in a strong position to ensure the United States leads in blockchain technology and innovation. He also shared the announcement on X.
Farcaster has become a prominent platform in the Web3 community. In 2024, a16z led a $150 million funding round for the decentralized social media network, which is hosted on Ethereum and has around 50,000 daily active users. The platform is primarily used by the Web3 community and serves as a foundation for various applications. Matt Hougan, chief investment officer at Bitwise, reacted to the news by predicting a positive impact on DeFi assets, and described Quintenz as a strong supporter of decentralized finance.
Before officially taking the role, Quintenz has to go through a Senate hearing and win approval through a vote. If confirmed, he will replace Rostin Behnam as the head of the CFTC. In 2021, he joined the board of Kalshi, a crypto-friendly prediction market that successfully sued the CFTC under Biden’s administration to gain the right to list political betting contracts. He later joined a16z as head of policy in 2022.
Quintenz is no stranger to the CFTC after he served as a Republican commissioner from August of 2017 to September of 2021. His nomination follows Trump’s December selection of Paul Atkins, another former commissioner, to lead the SEC.
Jonathan Gould Tapped to Head OCC
President Donald Trump also recently nominated Jonathan Gould, a former executive at blockchain infrastructure firm Bitfury, to lead the Office of the Comptroller of the Currency (OCC), which is the country’s bank regulator. The White House submitted Gould’s nomination to the Senate on Feb. 11, and if confirmed, he will serve a five-year term as Comptroller of the Currency. Gould is currently a partner at law firm Jones Day, and previously held key roles at the OCC during Trump’s first administration. He was also a director at BlackRock from 2014 to 2018.
(Source: Congress.gov)
The OCC oversees national banks in the US, including major institutions like JPMorgan Chase and Bank of America, ensuring the stability of the financial system. Kristin Smith, CEO of the Blockchain Association, praised Gould’s nomination due to his experience in crypto and banking, which she believes will be very valuable assets for leading the agency. Avichal Garg, co-founder of Electric Capital, described the move as a positive step for fintech and crypto firms looking for better access to financial services. He pointed out that Gould also advocated for fair banking access for crypto companies and opposes Operation Chokepoint 2.0.
Gould previously testified before Congress in 2023 by warning that regulatory actions under Biden’s administration may have discouraged banks from engaging with digital asset firms. His nomination coincides with reports that Trump officials are exploring potential changes to the US financial regulatory landscape, including folding the Federal Deposit Insurance Corporation (FDIC) into the Treasury or merging its regulatory functions with the OCC.
Another important nomination is John Hurley as the Treasury’s undersecretary for terrorism and financial crimes. Hurley has invested in Bitcoin, and is expected to take a balanced approach to crypto regulation while also focusing on compliance, stablecoin oversight, and enforcement against illicit financial activities.
This article was originally Posted on Coinpaper.com
