Coinbase Soars as US Senate Prepares to Vote on Cryptocurrency Regulation Bill
Shares of Coinbase (NASDAQ:COIN) jumped 8.7% in afternoon trading following news that the Senate is preparing to vote on the Digital Asset Market Clarity Act (CLARITY Act). This 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 to Neutral from Sell, citing diminishing analyst pessimism regarding policy headwinds. He also raised his price target to $177. Engel noted that even if the legislation stalls, regulatory exemptions and tokenized equities are likely to advance next year regardless.
The upgrade is driven in part by a cyclical rebound in Bitcoin, which was trading up roughly 2% as of this writing, moving above $79,000. This has boosted investor sentiment and driving buying pressure in crypto-linked equities ahead of the congressional decision.