Coinbase Global Inc. (NASDAQ: COIN) stands to benefit from improving U.S. regulatory clarity and a potential rebound in cryptocurrency activity, with CEO Brian Armstrong bullish on Bitcoin's (CRYPTO: BTC) longer-term prospects and Needham analyst John Todaro seeing signs that the broader crypto market has already bottomed.

Armstrong Expects Regulatory Clarity

Armstrong told CNBC that the proposed Clarity Act could establish clearer U.S. rules for digital assets, protect consumers and support domestic crypto development.

"I think the Clarity Act is ready to get a yes vote," Armstrong said, citing bipartisan negotiations and support from law enforcement groups, banks and crypto companies.

He also expects greater clarity even if Congress does not pass the bill, saying the SEC and CFTC are prepared to issue rulemaking and innovation exemptions under their existing authority.

Regulation Could Unlock Institutional Capital

Armstrong compared the potential impact with the GENIUS Act, saying more than 150 large companies integrated stablecoins within three months of that legislation passing.

He believes broader crypto rules could remove a key barrier for institutional investors.

"It would be a big milestone certainly to unlock institutional capital and to bring, uh, things like tokenized equities and perps to the United States," Armstrong said.

Armstrong also said regulated stablecoins create structural demand for U.S. Treasury bills.

Armstrong Sees Bitcoin Cycle Turning Higher

Armstrong believes Bitcoin has already reached the bottom of its latest cycle after roughly a year of weakness.

"I personally believe that, uh, the bottom is in on on Bitcoin in this most recent cycle," Armstrong said.

He expects regulatory developments and the next Bitcoin halving to support the market over the coming years and called $400,000 Bitcoin by 2030 "a reasonable target."

Armstrong also argued that excessive government spending can push capital toward Bitcoin, which he described as a digital version of gold.

Needham Sees Crypto Recovery Benefiting Coinbase

Todaro separately told CNBC that Needham believes crypto has bottomed, pointing to several factors that could support a recovery.

He said cooling enthusiasm for AI stocks could allow capital to rotate back into crypto, while much of the selling pressure has already worked through digital assets.

Todaro noted that Bitcoin miners sold more Bitcoin in the first half of 2026 than during any other period and said sentiment among retail, institutional and crypto-native investors had fallen to unusually weak levels.

"You're starting to see some activity come back in into the market, and I think that is going to benefit certainly Robinhood Markets Inc. (NASDAQ: HOOD), uh, Coinbase as well," Todaro said.

Needham's proprietary sentiment index reached its weakest levels since 2022 and 2023, which Todaro said historically correspond closely with market bottoms.

Todaro expects Bitcoin to recover, although returning to previous highs could take time. He described the current stage as the "first innings" of a move toward higher highs.

Taken together, Armstrong and Todaro see improving regulatory conditions and recovering crypto-market activity creating a more favorable backdrop for Coinbase and the broader digital-asset industry.

Coinbase Top ETF Exposure

• Corgi Crypto Infrastructure ETF (NASDAQ: BLCK): 6.95% Weight
• ARK Innovation ETF (NYSE: ARKK): 3.94% Weight
• ARK Blockchain & Fintech Innovation ETF (NYSE: ARKF): 4.94% Weight

Significance: Because COIN carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Coinbase Price Action

COIN Price Action: Coinbase Global shares were down 0.49% at $173.86 during premarket trading on Thursday, according to market data.