Coinbase Jumps on Regulatory Hopes Ahead of Senate Vote

Coinbase shares jumped 6% to $185.34 on Monday morning after Compass Point analyst Ed Engel upgraded the exchange operator to Neutral from Sell ahead of a scheduled Senate floor vote on crypto market-structure legislation.

The Digital Asset Market Clarity Act, or Clarity Act, would establish a new regulatory structure for digital assets and has been stalled since clearing the Senate Banking Committee in May. Crypto companies support the measure, but U.S. banks have lobbied against it over stablecoin interest payments.

Engel argued that Bitcoin's current price is tracking close to its traditional four-year cycles, and rising expectations of a recovery from the bottom drove his upgrade of Coinbase.