Coinbase stock jumped by nearly 10% on Monday after President Donald Trump made a major concession on the CLARITY Act and as Bitcoin and other tokens held steady. COIN jumped to $191.50, up by over 37% from its lowest level this year.
Coinbase stock jumps after CLARITY Act concession
COIN stock jumped by nearly 10% on Monday after President Trump made some major concessions on the CLARITY Act. The new agreement allows for state attorneys general to take enforcement action on violations of the law, not just the Justice Department.
Another key concession is that the bill would require government officials to divest any significant financial interest in an entity that issues cryptocurrencies. This provision became of significant importance after Trump reported that he made over $2 billion last year from his crypto holdings.
Trump is a major player in the crypto industry. He launched the TRUMP meme coin last year, with thousands of people losing a fortune as its price plunged. Trump also launched World Liberty Financial, which operates the USD1 stablecoin. World Liberty recently received a provisional bank charter from the OCC.
Trump Media is also a big holder of Bitcoin, while his sons have large stakes in companies in the crypto industry, including American Bitcoin.
The CLARITY Act would benefit a company like Coinbase because of its strong presence across various industries. It is the biggest exchange in the United States. It is also a top custodian of crypto ETFs and a major player in the stablecoin industry through its partnership with Circle.
The act will transfer most of the regulatory authority from the Securities and Exchange Commission (SEC) to the smaller Commodity Futures Trading Commission (CFTC). Coinbase has been at odds with the SEC in the past.
Still, despite the recent concessions by Trump, traders on Polymarket believe that the bill will not become law this year. Odds of the bill being passed have dropped to 19% from the year-to-date high from nearly 80%.
Coinbase’s business is on a transition
COIN stock remains in a tight range as the company remains in a transition from being merely a crypto company into a platform to trade all assets. It has already used real-world asset (RWA) tokenization technology to offer stocks, commodities, and ETFs.
The company has also become an important player in the predictions market through a partnership with Kalshi. These initiatives aim at helping the company offset the seasonality of the crypto industry.
This transition explains why analysts have started upgrading the company. Compass Point hiked the rating from sell to neutral, with the target from $130 to $177. Morgan Stanley initiated the stock with a target of $250, while Goldman Sachs hiked its rating from $196 to $219.
Coinbase stock is also benefiting from the resilience of the crypto market. Bitcoin remains above $78,000, while the crypto market cap jumped to over $2.6 trillion.
Coinbase stock technical analysis
COIN stock chart | Source: TradingView
Technicals suggest that the COIN stock has more upside to go. It has formed a bullish flag pattern, which normally leads to more upside over time.
The stock has moved above the 50-day Exponential Moving Average (EMA). It is also slightly above $181, its highest level on July 21. Therefore, these technicals point to more gains, which will be confirmed if it moves above the key resistance at $193, the upper side of the horizontal channel.
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