Coinbase Soars 8.7% on Senate Vote for Digital Asset Clarity Act
Shares of Coinbase (NASDAQ:COIN) jumped 8.7% in the afternoon session after the Senate prepared for a crucial floor vote on the Digital Asset Market Clarity Act (CLARITY Act). The bill aims to establish a clear regulatory framework for digital assets in the U.S., incorporating new ethics restrictions and stablecoin safeguards.
Compass Point analyst Ed Engel upgraded Coinbase's stock from Sell to Neutral, citing diminishing analyst pessimism regarding policy headwinds. He argued that even if the legislation stalls, regulatory exemptions and tokenized equities are likely to advance next year regardless.
The upgrade came as a result of legislative momentum surrounding the CLARITY Act. The bill is expected to be voted on in the Senate, with the analyst noting that his base case expects the bill to fail its initial 60-vote cloture threshold.
Bitcoin prices have also contributed to the surge in Coinbase's stock. The cryptocurrency traded up roughly 2%, moving above $79,000 as of this writing, boosting investor sentiment and driving buying pressure in crypto-linked equities.