Coinbase’s Regulatory Breakthroughs and Market Expansion
I think 2025 was a pivotal year for Coinbase, perhaps more than anyone expected. The company managed to resolve its long-standing dispute with the Securities and Exchange Commission when the regulator dropped its lawsuit. That’s significant, really—it removes a major cloud that had been hanging over the company for years. At the same time, the GENIUS Act created nationwide stablecoin standards in the U.S., which provided much-needed clarity.
Beyond American borders, Coinbase received authorization under the EU’s Markets in Crypto-Assets regime. This means they can now offer regulated services across all 27 European Union countries. That’s a huge market opening up for them, and it shows how regulatory landscapes are shifting globally.
Strategic Moves and Product Innovations
The company made some interesting geographical moves too. They relocated to Texas, which is becoming something of a hub for digital asset activity. On the product side, they enhanced their U.S. trading platform to include futures products and perpetual-style futures. Their institutional division started offering 24/7 futures trading with cross-margining between spot and derivatives markets—all regulated by the CFTC.
But perhaps the biggest news was their acquisition strategy. Coinbase acquired Deribit, which was reportedly the largest acquisition in the crypto market that year. This significantly strengthens their derivatives offerings, which is becoming an increasingly important part of the trading landscape.
Beyond Trading: New Financial Products
What’s interesting to me is how Coinbase expanded beyond just trading. They launched Coinbase One in the United States, which offers Bitcoin rewards on purchases. They also added trading and prediction markets, including those powered by Kalshi.
The crypto-backed lending feature is worth noting too. Users can now borrow USDC backed by Bitcoin and Ethereum through Morpho, which is a Base product. The platform reportedly acquired more than 1 billion Bitcoins in loans during the year—that’s a substantial amount, though I’m curious about the exact mechanics of how that works.
They also integrated decentralized exchange trading directly into the Coinbase app. This lets users access on-chain markets on Base and Solana without leaving the platform. It’s a smart move that bridges centralized and decentralized worlds.
Base Network Developments and Future Plans
Base remained their main on-chain infrastructure throughout 2025. More than 18 local-currency stablecoins were introduced on the network across Asia-Pacific, Latin America, and Europe. This enables routine payments in local currencies, which could be a game-changer for everyday crypto adoption.
USDC payments were implemented at checkout on Shopify through Base, allowing internet merchants worldwide to settle on-chain. That’s practical utility, not just speculation.
The network achieved Stage 1 decentralization with permissionless fault proofs and an independent security council. This reduces dependence on a single operator, which is important for long-term resilience. The developer team also created the x402 payment standard, aiming to provide native on-chain payments to developers and automated agents.
Looking ahead, CEO Brian Armstrong has proposed plans for 2026 that include creating an all-encompassing financial application. This would combine crypto, equities, prediction markets, and other asset classes. It’s ambitious, but given their 2025 progress, perhaps not unrealistic.
The S&P 500 inclusion is worth mentioning separately—it’s symbolic but important. Coinbase became the first crypto-native company added to the index, which places them firmly within mainstream equity portfolios. That’s validation from traditional finance that crypto companies can meet their standards.
All these developments together paint a picture of a company that’s maturing, expanding its reach, and finding ways to operate within regulatory frameworks while still innovating. It’s not without challenges, of course, but 2025 seems to have been a year of significant forward momentum for Coinbase.
