Coinbase Stock Slumps After Q2 Earnings—Defiantly Battles FDIC’s Bid to Toss Lawsuit

Coinbase shares took a hit following its Q2 earnings release—but the crypto giant isn’t backing down from regulators.

The FDIC wants out? Coinbase says not so fast. The exchange is digging in its heels, challenging the agency’s attempt to dismiss its lawsuit. Another day, another skirmish in crypto’s regulatory trench warfare.

Wall Street analysts shrug—because when has volatility ever scared off crypto believers? Meanwhile, traditional finance quietly mutters 'told you so' from the sidelines.

Coinbase Challenges FDIC’s Attempts To Dismiss FOIA Case

Chief Legal Officer at Coinbase, Paul Grewal, took to X on 31 July 2025 to say that the company filed an opposition brief  to the Federal Deposit Insurance Corporation’s (FDIC) motion to dismiss and motion for summary judgment in our Freedom of Information Act (FOIA) case.

Grewal said, “FDIC continue to stonewall our efforts to shed light on the previous administration’s Operation Chokepoint 2.0. We can’t and won’t stand for it.”

Furthermore, criticising the FDIC he said, “The industry cannot afford to be complacent. Historic progress at the federal level is undeniable, but it is imperative that we uncover historic misdeeds so that THEY NEVER HAPPEN AGAIN.”

We also filed a motion to take additional discovery from the FDIC to get to the bottom of their FOIA practices, which as we’ve seen in our case are far from what the law requires. The agency should testify via a 30(b)(6) deposition and produce the letters it sends to FOIA…

— paulgrewal.eth (@iampaulgrewal) July 31, 2025

Key Takeaways

• Despite Q2 headwinds, Coinbase announced plans to launch new services beyond cryptocurrencies, including tokenized real-world assets, derivatives trading, prediction markets, early-stage token sales—beginning with US users.

• Coinbase’s close partnership with Circle and revenue-sharing arrangement on USDC interest income bolstered its earnings. Coinbase keeps 100% of revenue from USDC held on its own platform and approximately 50% of revenue from USDC held elsewhere, benefiting from the surging interest in stablecoins.