Coinbase settles FOIA case for $150,000 as shares slip 4%

Shares of Coinbase fell sharply on July 22, erasing much of the previous day's gains, as renewed political disagreements in Washington dramatically lowered the odds of a major cryptocurrency regulatory bill passing this year. The stock decline coincided with the company announcing a legal settlement with the U.S. Securities and Exchange Commission.

Coinbase stock closed down approximately 4% near $169, retreating from a close above $170 on July 21. The reversal followed a steep drop in the predicted likelihood of the CLARITY Act becoming law. Data from prediction markets showed the bill's chance of passage before the end of 2026 falling to 37%, down from 52% just a day earlier.

The sudden shift stemmed from a breakdown in negotiations over the bill's proposed ethics provisions. While President Donald Trump had agreed to include the provisions, helping lift the bill's prospects earlier in the week, a dispute emerged over enforcement. Some Democratic senators objected to a White House proposal that would assign enforcement to the U.S. Department of Justice instead of state attorneys general. Senator Angela Alsobrooks described the offer as unserious, stating lawmakers would...