William Blair Sees Upside for Coinbase and Circle Amid Regulatory Shift

William Blair, a U.S. investment bank, has maintained its positive stance on Coinbase and Circle, citing the changing regulatory environment and expansion of their business portfolios.

The firm assigned an 'Outperform' rating to both companies in a recent report and believes that current price levels offer an attractive entry point for investors.

Coinbase's stock has surged 31% since July 14, but William Blair assessed that the current level is still attractive, even accounting for sluggish spot trading volumes.

The regulatory overhaul is expected to accelerate under the leadership of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC), following the failure of the CLARITY Act, a digital asset market structure bill, to advance in the U.S. Senate.

The SEC's recently announced exemption for tokenized stock trading was also cited as a factor that could contribute to improved investor sentiment.

However, near-term earnings estimates were revised downward, with Coinbase's 2026 EBITDA estimate lowered by 11% from its previous projection to $810 million.