COIN, the native stock of crypto exchange Coinbase, dropped 6.4% on Jan. 15 as Coinbase withdrew support from the crypto market structure bill due to disagreements over stablecoin rewards, challenging the status quo.

The COIN stock price faced rejection at $255, correcting 6.4% on Jan. 15 and forming a death cross pattern under $240 levels, signaling bearish sentiment.

Chad Ventures noted a bearish technical pattern with the 50-day SMA crossing below the 200-day SMA, but history shows similar setups coincided with major price rallies of over 100%.

Coinbase withdrew from the crypto market structure bill over issues like a ban on tokenized equities and DeFi limitations, opting for no bill instead of a “bad bill.”

Crypto journalist Eleanor Terret questioned the impact of Coinbase’s withdrawal on its prospects, to which CEO Brian Armstrong responded that the broader industry shares their reservations about the bill’s current form.

Citron Research criticized Coinbase’s withdrawal from the bill, suggesting it stems from fear of rising competition rather than genuine objections to the bill’s framework.

The firm endorsed Securitize, a tokenization platform planning to go public via SPAC merger with Cantor Equity Partners II, highlighting its issuance of over $4 billion in tokenized assets.

Read more at Yahoo Finance: COIN Stock Price Drops 6.4% after Coinbase Withdraws Support for Crypto Bill