Coinbase Withdraws Support, Senate Delays Vote
While bitcoin surges past $97,000 to trigger massive ETF inflows, the legislative landscape in Washington fractures as Coinbase withdraws support for key market structure bills. Meanwhile, traditional finance and crypto-native firms alike, from Bank of America to Galaxy Digital, are issuing strategic updates on stablecoins, tokenization, and infrastructure. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.SENATE DELAYS VOTE AFTER COINBASE WITHDRAWS SUPPORT AND ROBINHOOD DIGS IN:Legislative momentum has stalled after the Senate Banking Committee postponed its markup of the crypto market structure bill., Coinbase (COIN) CEO Brian Armstrong announced the company could not support the current draft, arguing it would enact a "de facto ban" on tokenized equities and restrict stablecoin rewards. Conversely, RobinhoodCEO Vlad Tenevto the process, stating on X that the brokerage sees a path forward to help Congress pass the framework despite the delay.BANK OF AMERICA CEO WARNS OF $6T DEPOSIT MIGRATION TO STABLECOINS:During a Wednesday earnings call, Bank of America (BAC) CEO Brian Moynihanregarding the potential impact of interest-bearing stablecoins. Moynihan told analysts that up to $6T, roughly 30% to 35% of total U.S. commercial bank deposits, could migrate to these digital assets if permitted. He noted that such a shift would move funds outside the traditional banking system, resembling money market funds and potentially shrinking the capital base available for lending.GALAXY DIGITAL AND LSEG DEBUT BLOCKCHAIN PLATFORMS AMID MRBEAST DEAL:Institutions are advancing infrastructure projects despite the regulatory gridlock. Galaxy Digital (GLXY)of a $75M tokenized collateralized loan obligation on the Avalanche blockchain, the network powered by the avalanche token (AVAX-USD), to fund operations for Arch Lending .In a separate move highlighting the convergence of creators and crypto, Bitmine Immersion Technologiesin Beast Industries, the company behind YouTube star MrBeast.Meanwhile, the London Stock Exchange Group (LDNXF)to settle transactions using tokenized commercial bank deposits. Across the channel, Societe Generale (SCGLY)with SWIFT to settle tokenized bonds using its compliant stablecoin.ARK INVEST PORTFOLIO SHIFTS AS BLACKROCK SEES RECORD INFLOWS:In fund news, Ark Investrevealing that Coinbase and Roblox (RBLX) were significant detractors in Q4. However, the fund highlighted strong contributions from other holdings including AMD, Alphabet, Shopify, Roku, and Tesla. Ark also maintains exposure to Blockand Circle Internet Group.Elsewhere, institutional demand for spot bitcoin products is accelerating.reveals that BlackRocksaw its iShares Bitcoin Trust lead a daily surge of over $840M in total inflows as the price of bitcoin rallied on Wednesday.PRICE ACTION:As of time of writing, bitcoin was trading at $96,260.01, while ether was trading at $3,312.38,.
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Analysis of Market Performance: Robinhood vs. SoFi
- Robinhood Performance: Robinhood's stock surged over 200% in 2025, achieving a three-year gain of 1,000%, yet it has dropped 23% since its October peak, raising investor concerns about its reliance on cryptocurrency and high valuation, suggesting caution.
- SoFi Customer Growth: SoFi added over 900,000 new accounts in Q3 2025, primarily from high-quality young professionals, with 90% of deposits coming from direct deposits, indicating significant future revenue growth potential.
- SoFi Asset Growth Comparison: Compared to the five largest U.S. banks, SoFi's assets remain relatively small, but its asset growth over the past five years demonstrates strong potential, with management aiming to sustain momentum through a diversified growth strategy.
- SoFi's Stability: While SoFi's stock gained 70% in 2025, its business model is less sensitive to market volatility, with more reliable revenue streams, making it appealing to a broader audience seeking easy-to-use digital financial services.
The Reality Behind XRP's Price Surge
- Price Surge: XRP has surged over 300% since the summer of 2024, attracting significant investor interest, yet the long-term growth potential remains questionable due to underlying market dynamics.
- Bank Adoption Issues: While XRP is designed for cross-border transactions, most banks do not use XRP directly when utilizing RippleNet, opting instead for fiat currencies, which limits the demand for XRP.
- Increased Market Competition: Following Ripple's acquisition of a stablecoin payment facilitator, the introduction of RLUSD as a bridge asset in ODL transactions could undermine XRP's market position further.
- Investor Expectations Diminished: Although there may be some short-term price appreciation, the inherent weaknesses in the core investment thesis suggest a significant risk of long-term price decline for XRP, necessitating caution among investors.
