Coinbase Stock Slumps as Senate Clarity Act Fails to Gain Traction

Coinbase (COIN) shares are down 3% on Friday as uncertainty surrounding the Senate's Clarity Act weighs on the stock.

The bill, which would create a regulatory framework for digital assets in the U.S., is facing a tight deadline and a political standoff that could delay crypto legislation for years.

Multiple analysts have cut their price targets for COIN, with Barclays lowering its target from $107 to $99, giving the stock an 'underweight' rating. Citi cut its target from $400 to $235, while Robert W. Baird dropped its target from $160 to $142.

Despite these headwinds, there are signs of optimism in the market. The core debate in Congress has shifted away from whether crypto should be regulated and toward questions of political conflicts of interest, a sign that the industry has gained broader acceptance.