Cryptocurrency exchange Coinbase (COIN) stands to be a major corporate beneficiary of the United States’ first comprehensive crypto legislation, the GENIUS Act. Signed into law in July 2025, the act established a federal framework for stablecoin issuance and oversight. According to Bloomberg analysts Paul Gulberg and Samuel Radowitz, this new framework could significantly strengthen Coinbase’s rapidly growing stablecoin business, especially if adoption of dollar-backed tokens expands into mainstream payments.
In 2025, Coinbase generated an estimated $1.35 billion in revenue from stablecoins, a 48% increase from $911 million in 2024. This segment represented 19% of the company’s total annual revenue, highlighting how crucial stablecoins have become to its overall business model.
Unlike trading fees, which fluctuate sharply with crypto market volatility, stablecoin-related income comes from interest earned on the reserves backing Circle’s USDC. These reserves are primarily invested in U.S. Treasuries and other low-risk instruments. Coinbase receives a significant share of this interest income, making the business more predictable and generally higher-margin than transaction-based revenue.
The importance of this revenue stream was especially clear in late 2025. While Bitcoin and broader crypto prices fell sharply, and Coinbase’s fourth-quarter revenue dropped 20%, income from stablecoins remained relatively stable. Gulberg and Radowitz suggest this consistency could become even more significant if regulatory clarity accelerates broader USDC adoption.
The GENIUS Act is central to that outlook. By providing a national regulatory structure for stablecoin issuers, the legislation could remove barriers that have limited the use of USDC in areas like cross-border payments and merchant settlements. If businesses and financial institutions adopt stablecoins more widely for real-world transactions, the overall supply of USDC could expand substantially. An increase in USDC circulation would require more reserves to back those tokens, generating more interest income from the underlying Treasury holdings. Since Coinbase shares in that yield, greater adoption directly translates to higher potential revenue.
Bloomberg analysts estimate that under favorable conditions, Coinbase’s USDC-related revenue could grow by two to seven times its current level. However, reaching the upper end of that projection depends on whether Coinbase can continue offering rewards to customers who hold USDC. If these reward mechanisms remain, analysts believe USDC adoption could accelerate more rapidly. Even if such programs are limited or scaled back in ongoing negotiations on the CLARITY Act, the clearer regulatory environment created by the GENIUS Act is still expected to support meaningful growth in stablecoin usage.
At the time of writing, the exchange’s stock, trading under the ticker COIN, surged toward $185 during Wednesday’s trading session, marking a 22% increase over 24 hours.
Frequently Asked Questions
Of course Here is a list of FAQs about the Bloomberg analysis on Coinbase and the GENIUS Act designed to be clear and cover a range of understanding
Beginner Definition Questions
1 What is the GENIUS Act
The GENIUS Act is a proposed US bill Its main goal is to require stablecoin issuers to provide detailed reports on their reserves to Congress and the public
2 What are stablecoins and why are they important
Stablecoins are cryptocurrencies designed to have a stable value typically pegged 11 to a flat currency like the US dollar They are crucial for trading moving money quickly on blockchain networks and serving as a safe harbor from crypto market volatility
3 How does Coinbase make money from stablecoins
Coinbase earns interest income It holds significant reserves of customer stablecoins and invests them in safe shortterm assets like US Treasury bonds The interest earned from these investments is a major revenue stream for the company
Core Analysis Mechanism Questions
4 What exactly did the Bloomberg analysts say
Analysts at Bloomberg Intelligence suggested that if the GENIUS Act becomes law Coinbases annual revenue from its stablecoin segment could grow from an estimated 100150 million to around 1 billiona potential sevenfold increase
5 How would the GENIUS Act cause this huge increase
The key mechanism is clarity and trust The Act would provide clear federal rules for stablecoins Analysts believe this regulatory certainty would lead to a massive surge in the adoption and use of compliant stablecoins like USDC More USDC in circulation means more reserves for Coinbase to invest and earn interest from
6 Is this a guaranteed outcome
No This is a projection and analysis based on a specific ifthen scenario It depends on the Act passing in its current form market adoption playing out as predicted and no other major economic or regulatory shifts disrupting the model
Advanced Market Impact Questions