Coinbase Stock Rises on Strong Regulatory Developments
Coinbase stock reached fresh record highs on Thursday, trading up 5% as the crypto exchange’s shares flirted with their highest closing point ever, briefly touching $375. Readings on Yahoo Finance showed the stock trading around $372, surpassing its previous intra-month peak. Year-to-date, the stock is up 50% from its January starting point of $256.
Market Performance
Coinbase stock surged 5% during Thursday’s pre-market session, bringing its price close to an all-time high. The stock reached approx. $372, exceeding its previous record close of $357 set in November 2021. Year-to-date performance has been strong, with shares climbing 50% from $256 at the start of the year.
Analyst Perspectives
Analysts see several positive catalysts boosting Coinbase. Benchmark’s Mark Palmer highlighted the passage of the CLARITY Act alongside Circle’s recent IPO. He told Decrypt, “a comprehensive regulatory framework would impact almost every area of Coinbase’s business” and could trigger “a wave of institutional adoption” that the company is well-positioned to capitalize on. He raised his price target to $421.
Separately, earlier this week, Palmer increased his price target further to $421 from $301. He cited Coinbase’s European expansion and its ability to integrate Circle’s USDC stablecoin into its services.
Regulatory Developments
The recent legislative momentum includes the Senate-passed stablecoin bill and the prospective enactment of the CLARITY Act, which aims to define cryptocurrency jurisdiction between the SEC and CFTC and establish a pathway for token classification as commodities. Companion legislation, the GENIUS Act (proposing stablecoin rules), may also gain traction this summer.
Federal Housing Finance Agency announced Wednesday that Fannie Mae and Freddie Mac will prepare to accept cryptocurrency for mortgage payments, reinforcing the steady integration of digital assets into traditional finance, according to analysts.
Leadership on these measures shows legislative efforts aim for a draft bill before August recess, targeting markup sessions in September. However, legislative progress in this complex field faces hurdles.
Industry Outlook
Commentators like Hashdex’s Gerry O’Shea emphasize the continuation of mainstream crypto adoption despite short-term volatility. He notes that “the steady mainstream adoption of digital assets is only marching forward” influenced by these regulatory developments.
Coinbase derives most revenue from trading fees, supplemented by holdings of Circle’s USDC stablecoin.
Investment firm Bernstein recently called the company “misunderstood” in a note, predicting Coinbase shares could reach $510 by 2027.
