Coinbase reported a surprise quarterly loss due to weaker trading volumes during a digital-asset selloff in the final months of 2025. The company’s loss was $666.7 million, with transaction revenue dropping to $982.7 million, driven by a 45% decline in consumer transaction revenue.

Investors withdrew billions from spot bitcoin ETFs, impacting the cryptocurrency rally. Despite a rise in subscription and services revenue, Coinbase’s stock is down nearly 40% this year. Stablecoin revenue increased to $364.1 million, providing a buffer against revenue volatility.

Stablecoins, like USDC, are gaining mainstream support and regulatory attention. Coinbase earns revenue from USDC held on and off its platform, backed by U.S. dollar reserves. However, the Clarity Act, which aims to regulate digital assets, faces delays due to industry disagreements.

A White House meeting failed to resolve disputes between major U.S. banks and crypto firms, stalling progress on landmark digital-asset legislation. The Act would create federal rules for digital assets after years of industry lobbying efforts.

Read more at Yahoo Finance: Coinbase posts surprise loss on crypto trading slowdown