The U.S. cryptocurrency sector saw multiple pivotal developments this week, signaling deeper integration of digital assets into mainstream financial systems. Among the most notable moves, the Federal Housing Finance Agency (FHFA) directed government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac to formally consider incorporating cryptocurrencies into their single-family mortgage risk assessment frameworks. This marks the first time crypto assets have entered the core of America’s housing finance infrastructure.
Meanwhile, Zac Folkman, co-founder of World Liberty Financial—a crypto platform backed by former President Donald Trump—announced plans to audit its stablecoin within days and launch a new crypto application soon. Federal Reserve Chair Jerome Powell also acknowledged the maturation of the stablecoin sector during a Senate hearing, noting its growing alignment with traditional financial systems.
These developments, combined with the recent Senate passage of the GENIUS Act—a landmark stablecoin regulatory bill—propelled Bitcoin past $108,000 and lifted shares of Coinbase (NASDAQ: COIN) to their highest intraday level yet.
👉 Discover how Coinbase is positioning itself as a leader in the evolving crypto economy.
Record-Breaking Performance Amid Regulatory Clarity
On Wednesday, Coinbase closed at $355.37, just 0.6% below its all-time high set in 2021, with an intraday peak of $369.28—surpassing previous records. Since the Senate passed the GENIUS Act on June 18, the stock has surged approximately 40%. Year-to-date, it’s up 35.6%, and over the past 52 weeks, gains exceed 58.6%.
A key driver behind this momentum is stablecoins, particularly USD Coin (USDC), issued by Circle and distributed significantly through Coinbase. Stablecoins are digital currencies pegged 1:1 to the U.S. dollar, offering stability in volatile markets. In 2024 alone, Circle paid Coinbase $908 million—more than half of its $1.7 billion revenue. In Q1 2025, another $299 million was shared, underscoring the strength of their partnership.
Coinbase’s own stablecoin operations contributed 15% of its total revenue in the first quarter of 2025, further diversifying its income streams beyond trading fees.
According to Jeffrey Ding, Chief Analyst at Heskey Group, the GENIUS Act—mirroring Hong Kong’s recently introduced Stablecoin Ordinance—represents a shift from fragmented oversight to a structured regulatory environment. The legislation establishes clear rules for stablecoin issuers: full reserve backing in cash, short-term Treasuries, or government money market funds; mandatory audits; compliance with AML and KYC protocols; and a prohibition on paying interest. It also excludes foreign issuers and clarifies that stablecoins are neither securities nor commodities, providing much-needed legal clarity.
👉 Learn how regulatory clarity is fueling institutional adoption of crypto platforms like Coinbase.
Expanding Market Access and Institutional Adoption
Beyond domestic progress, Coinbase made international headlines by securing a MiCA license from Luxembourg’s financial regulator (CSSF)—becoming the first U.S.-based exchange approved under the EU’s Markets in Crypto-Assets (MiCA) regulation. This authorization allows Coinbase to offer services across all 27 EU member states under a unified legal framework.
Additionally, FactSet data shows that 235 U.S.-listed ETFs now hold Coinbase shares. Notably, crypto-focused funds such as Global X Blockchain ETF (BKCH), iShares Blockchain and Tech ETF (IBLC), and Bitwise Crypto Industry Innovators ETF (BITQ) allocate double-digit percentages to COIN, reflecting growing institutional confidence.
Coinbase has also filed with the SEC to explore using its proprietary blockchain for stock trading—an innovative move that could blur lines between traditional and digital finance.
Wall Street Bullish on Coinbase’s Future
With these catalysts in play, 29 Wall Street analysts currently rate Coinbase as a “moderate buy.” Among them:
- Gautam Chhugani of Bernstein upgraded his 2027 price target from $310 to **$510**, a 65% increase. He described Coinbase as “the most misunderstood and undervalued company in crypto”—comparing it to Amazon in its early disruptive phase. His bullish case hinges on Coinbase’s dominance in U.S. crypto trading, leadership in stablecoin volume, ownership of Deribit (the largest global crypto options exchange), and operation of Base—the fastest Ethereum Layer 2 network.
- Devin Ryan at Citizens Bank set a $400 target price, implying a 12.6% upside from current levels. He highlighted emerging multi-billion-dollar revenue opportunities beyond core trading, including staking, lending, and institutional services.
- Mark Palmer of The Benchmark Company raised his target from $301 to **$421**, citing a “string of compelling news” that collectively strengthens long-term growth prospects. He anticipates further positive announcements ahead.
Palmer also noted that if the proposed Digital Asset Market Structure Act passes—aimed at clarifying jurisdictional boundaries between the SEC and CFTC—Coinbase would stand to benefit disproportionately due to its compliant infrastructure and diversified product suite.
Why Analysts See Long-Term Value
Coinbase isn’t just riding regulatory tailwinds—it’s building an ecosystem. Its acquisition of Deribit expands its derivatives footprint. Base drives user growth through low-cost transactions and decentralized applications. And its expanding suite of financial services positions it as a gateway for both retail and institutional investors navigating Web3.
Moreover, clearer regulations reduce uncertainty for investors and encourage capital inflows. As stablecoin frameworks solidify under laws like the GENIUS Act, platforms that comply early gain competitive moats.
👉 See how leading crypto exchanges are adapting to new regulations and capturing market share.
Frequently Asked Questions (FAQ)
Q: Why is Coinbase’s stock rising now?
A: Recent gains are driven by regulatory progress—including the GENIUS Act and MiCA approval—strong financial performance from stablecoin partnerships, and growing institutional investment via ETFs.
Q: What is the GENIUS Act and how does it affect Coinbase?
A: The GENIUS Act establishes a federal framework for stablecoins, requiring full reserves and audits while banning interest payments. It benefits compliant players like Coinbase and Circle, reinforcing trust and scalability.
Q: Is Coinbase profitable from stablecoins?
A: Yes. Beyond distribution revenue from USDC, Coinbase earns directly from its own stablecoin operations, which accounted for 15% of Q1 2025 revenue.
Q: How does MiCA impact Coinbase’s business?
A: The MiCA license enables Coinbase to operate legally across all EU countries under one regulatory umbrella, opening access to over 450 million consumers.
Q: What are analysts’ average price targets for Coinbase?
A: While targets vary, recent upgrades place median expectations between $400 and $510—suggesting significant upside potential based on current valuation.
Q: Could future legislation boost Coinbase further?
A: Yes. If the Digital Asset Market Structure Act passes, it would clarify regulatory roles between SEC and CFTC, benefiting compliant platforms like Coinbase with clear operational frameworks.
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