Crypto Stocks Update and Market Analysis: Post-GENIUS Act Developments

Market Context: GENIUS Act & Q2 Earnings

The recent signing of the GENIUS Act and the upcoming reporting of Q2 earnings present a significant moment for analysis within the crypto stock sector.

Circle (CRCL): Analyst Downgrade Following Act

Following the enactment of the stablecoin-focused GENIUS Act, Compass Point analysts have downgraded **Circle** stock from Neutral to Sell.

Concurrently, their price target for CRCL shares has been reduced from $205 to $130, as detailed in their recent report.

Analysts Ed Engel and Abdullah Dilawar predicted the characteristic “sell-the-news” sell-off, noting shares experienced a 14% decline over the past five days, settling near $195.

The analysts acknowledged the rally preceding the Act’s signing but pointed to the stock’s subsequent drop to ~$195, representing a significant five-day decline.

Furthermore, complications stem from emerging stablecoin offerings by traditional banks and fintech companies, which are expected to pressure Circle’s premium valuation.

Galaxy Digital (GLXY): Positive Analyst Outlook

Separately, Jefferies began coverage on **Galaxy Digital** on Tuesday with a Buy recommendation and a $35 price target. Stock was trading just above $30.

Jefferies highlighted Galaxy’s competitive advantage as a “comprehensive provider for institutions seeking digital asset exposure” compared to peers like FalconX, Cumberland, Wintermute, NYDIG, and DeepChain.

The analysts suggest the GENIUS Act could unlock new business avenues, such as custody and stablecoin partnerships, while the CLARITY Act may further boost “incremental” revenue as institutional players enter the stablecoin segment.

Approximately two-thirds of Galaxy’s enterprise value derives from its data center operations, primarily a mining facility acquired from Argo Blockchain.

Coineb’s Q2: Consolidating Neutral View Amid Headwinds

In contrast, ahead of its July 31 Q2 earnings report, Compass Point analysts increased their **Coinbase** ($COIN) price target from $195 to $330, yet maintained a Neutral rating.

“We are hesitant toward shorting COIN during a crypto bull market and potential Fed rate cuts,” stated the analysts.

However, renewed caution arises if rate cuts and the CLARITY Act are delayed beyond Q3 2025, potentially exacerbating valuation pressures against a backdrop of deteriorating fundamentals. The analysis citing significant headwinds includes the shift in traditional trading towards US ETFs, CME futures, and decentralized exchanges, alongside reported declines in Coinbase’s transaction revenue, estimated at 45% quarter-over-quarter.

SharpLink Gaming Leadership Shift

**SharpLink Gaming**, the Nasdaq-listed entity formerly led by Joseph Lubin, recently named Joseph Chalom — former Head of Digital Asset Strategy at BlackRock — as Co-CEO.

Chalom takes the helm amidst reports revealing SharpLink holds a substantial 360,877 ETH as of July 20, reflecting an increased focus on its Ethereum treasury and investment strategy.