Coinbase Stock Surges as Revised Clarity Act Draft Boosts Passage Chances

Coinbase Global Inc. (NASDAQ:COIN) stock is trading higher on Monday after Senate Republicans released a revised draft of the CLARITY Act, increasing the chances that the crypto market-structure bill will pass.

The bill aims to clarify regulations around stablecoins and digital assets, but its passage has been met with resistance from some Democratic lawmakers who argue it does not go far enough on ethics safeguards and consumer protections.

Despite this opposition, Compass Point analyst Ed Engel upgraded Coinbase to Neutral from Sell and raised the price target to $177, citing growing signs that Bitcoin (BTC) has turned the corner off a cyclical low point. He noted the record $3 billion wipeout of short positions on Aug. 19 and bitcoin's climb past the $67,000 level, which marks the average cost basis for short-term holders.