Coinbase Plans 14% Job Cuts While Shares Jump 18% After Stablecoin Deal
Coinbase will cut about 14% of its global workforce to streamline operations ahead of AI-driven expansion, as shares climbed up to 18% following a provisional stablecoin rule in the stalled Clarity Act. Bank associations claim the stablecoin rewards clause still allows exchanges to pay interest, risking further legislative delays.
1. Workforce Reductions Planned
Coinbase plans to cut about 14% of its global workforce, citing a shift to leaner operations and an emphasis on AI-driven next-phase growth as outlined by CEO Brian Armstrong.
2. Share Price Reaction to Stablecoin Provision
Shares of Coinbase surged up to 18% after US lawmakers reached a provisional agreement on a key stablecoin rule in the stalled Clarity Act, which could authorize regulated rewards programs for stablecoin issuers.
3. Banking Industry Pushback
Major bank associations warn that the proposed stablecoin rewards clause contains a loophole permitting exchanges to pay interest, potentially drawing deposits away from traditional lenders and delaying comprehensive crypto legislation further.