Cryptocurrency markets received a boost this year after the U.S. Securities and Exchange Commission approved an exchange-traded fund that tracks the spot price of Bitcoin and Ether, ending a nearly decade-long battle.
“I'm increasingly optimistic that the next administration, whether Democratic or Republican, will be constructive on cryptocurrencies,” CEO Brian Armstrong said in a post-earnings conference call. “The rhetoric has changed.”
“Since our listing, we have repeatedly emphasized the need for regulatory clarification.”
The SEC and Coinbase continue to spar over disagreements over whether crypto tokens should be classified as securities and similarly regulated. The company accused the top U.S. market regulator of overreach, while the SEC claimed the largest U.S. cryptocurrency exchange was flouting rules.
In the aftermath, the sector's market capitalization has swelled to about $2.36 trillion, with gains in both Bitcoin and Ether, the second-largest crypto token, according to CoinGecko.
Coinbase's total trading revenue increased 139% to $780.9 million in the second quarter.
Revenue from Coinbase's subscription and services division, which houses its non-trading business, rose 79% to $599 million in the quarter.
Custody fee income for the quarter increased to $34.5 million, benefiting from inflows related to the Spot Bitcoin ETF.
The company's total revenue doubled to $1.45 billion, beating analysts' expectations of $1.4 billion, according to LSEG data.
The company reported earnings of 14 cents per share in the quarter, compared with a loss of 42 cents a year earlier.
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Reporting by Manya Saini in Bengaluru. Editing: Devika Shamnath
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