Bitcoin News Today: Coinbase's Patent Truce Eases Crypto Industry's IP Tensions

Coinbase Inc. has resolved a patent dispute with DynaPass Inc., ending a legal battle that had raised questions about the cryptocurrency exchange's use of two-factor authentication technology. The agreement, confirmed via a court filing on Oct. 31, includes a covenant not to sue Coinbase, its customers, suppliers, and partners, as well as members of the Crypto Open Patent Alliance, a nonprofit advocacy group. The resolution comes as Coinbase navigates a period of aggressive expansion and regulatory scrutiny, with recent financial results and strategic acquisitions underscoring its push into global payments and stablecoin infrastructure.

The patent dispute centered on DynaPass' U.S. Patent No. 6,993,658, which the software company had alleged Coinbase infringed. In September, Coinbase had filed a complaint seeking a declaratory judgment that it did not violate the patent, according to Bloomberg Law. The case, which was dismissed with prejudice, highlights the growing tension between crypto firms and patent holders as the industry grapples with intellectual property challenges.

Coinbase's financial performance in Q3 2025 provided a strong backdrop for the resolution. The exchange reported $1.9 billion in revenue and a net income of $432.6 million, a 55% year-over-year increase. Trading volumes rebounded, driven by renewed investor interest in crypto markets, while its Ethereum-based Layer 2 network, Base, contributed to profitability. The company also announced a significant Bitcoin holdings increase of 2,772 BTC, reflecting its dual role as both a trading platform and a custodian of digital assets, a detail noted in the same trading update.

Amid its financial success, Coinbase has pursued a series of acquisitions to bolster its payments infrastructure. The firm is nearing a $2 billion deal to acquire BVNK, a London-based stablecoin payments startup. The move aligns with the U.S. approval of the GENIUS Stablecoin Act, which has spurred innovation in the sector. BVNK's technology, which enables merchants to process stablecoin transactions, is expected to enhance Coinbase's Business platform.

However, regulatory challenges persist. Coinbase has criticized the Securities and Exchange Commission for what it describes as inconsistent enforcement actions and a hostile stance toward crypto innovation. The firm recently launched a lobbying campaign in Maryland to overturn a state order blocking its staking rewards program, arguing that the move stifles financial services for crypto holders. These efforts underscore the broader struggle within the industry to balance innovation with compliance as governments worldwide refine frameworks for digital assets.

The resolution of the DynaPass dispute allows Coinbase to focus on its strategic priorities, including expanding its stablecoin ecosystem and competing with traditional financial institutions entering the crypto space. With Bitcoin and Ethereum prices showing volatility, the company's ability to adapt to regulatory and technological shifts will be critical in maintaining its market leadership.