Coinbase Reports First-Quarter Loss

>"We're trying to diversify the things that people can trade so that as markets shift, as different behaviors shift, we'll always have something that people want to trade. Adjusted EBITDA came in at $304 million, below the $408 million consensus estimate.

Several analysts lowered price targets after the results but maintained positive ratings, pointing to stablecoin growth, derivatives and potential U.S. crypto legislation as longer-term supports. Pending legislation known as the CLARITY Act would clarify which digital assets fall under Securities and Exchange Commission oversight and which are regulated by the Commodity Futures Trading Commission.

Coinbase executives told analysts they expect a Senate Banking Committee markup this month and a broader vote later in the summer. Some analysts said clearer rules could encourage banks and asset managers to expand crypto activity.

Coinbase trading platforms remained down for more than five hours on Friday because of an Amazon Web Services outage at a data center in northern Virginia. The company said the performance issues were caused by the AWS disruption. All markets were later re-enabled.

AWS attributed the problem to increased temperatures within a single data center and said it had shifted traffic away from the affected Availability Zone for most services. Work to add more cooling capacity took longer than expected and the company had no timeline for full recovery as of its last update.

It was not immediately clear whether related issues at the CME derivatives marketplace were connected to the same AWS event. The outage is the latest in a series of disruptions that have exposed vulnerabilities in interconnected technology infrastructure.

AWS suffered a major outage last October that affected thousands of websites and applications. The following month, CME Group experienced one of its longest outages in years after a cooling failure at a data center operated by another provider.