COIN Stock Price Drops 6.4% after Coinbase Withdraws Support for Crypto Bill

COIN, the native stock of crypto exchange Coinbase, faced major selling pressure, correcting 6.4% on Jan. 15. This drop in the COIN stock price comes as Coinbase withdraws its support from the crypto market structure bill. Citing differences over stablecoin rewards, Coinbase CEO Brian Armstrong noted that this is a major challenge to the status quo. “We’d rather have no bill than a bad bill,” he said.

COIN Stock Price Tanks 6.4%, Forming a “Death Cross”

The COIN stock price faced yet another rejection at $255, and corrected 6.4% during the Jan. 15 trading session. As a result, the stock ended trading under $240 levels once again, forming a death cross pattern on the technical charts.

Chad Ventures noted the technical price patterns with the 50-day simple moving average (SMA) crossing below the 200-day SMA. This indicator reflects a bearish technical pattern.

However, Chad Ventures noted that the last two times COIN stock price made a similar setup, the pattern closely coincided with major price bottoms. In both prior cases, the stock rallied more than 100% there after.

The latest volatility in the COIN stock price comes as Coinbase withdrew from the crypto market structure bill earlier this week. Armstrong cited major issues such as a ban on tokenized equities, DeFi limitations, curbing of CFTC authority and others, as the reason behind the withdrawal. He further added that it’s better not to have a bill than a “bad bill”.

Has Coinbase Hurt the Crypto Bill Chances Forever?

Popular crypto journalist Eleanor Terret has reached out to Brian Armstrong, asking whether the company’s decision to withdraw support might permanently damage its prospects.

Armstrong noted that he doesn’t think so, adding that Coinbase’s reservations are shared by much of the broader crypto industry. He added that the core disagreement is not over the issues themselves, but whether they should be addressed immediately in the bill or revised at a later stage.

“My sense is that the work on the bill has not slowed down. In fact, if anything, it’s intensified and it’s really just brought people together and highlighted the issues that need to get resolved,” noted Armstrong.

On the other hand, Citron Research criticized Coinbase for withdrawing support for crypto market structure legislation. They noted that the exchange fears rising competition rather than objections to the bill’s framework.

The firm also backed tokenization platform Securitize, which plans to go public via a SPAC merger with Cantor Equity Partners II in the first half of 2026. Citron noted that BlackRock-backed Securitize has issued more than $4 billion in tokenized assets.

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