Coinbase Stock Soars 38% on Regulatory Clarity and Price Target Boost

Coinbase's stock price experienced a significant surge, rising by 38% since June 18. This increase was driven by two key factors: enhanced regulatory clarity and a boost in the price target from a prominent investment research firm. The stock reached a 52-week high of $369 on Wednesday before settling around $352.

The U.S. Senate's passage of the GENIUS act, which aims to establish a regulatory framework for stablecoins, played a pivotal role in this surge. Stablecoins are a type of cryptocurrency pegged 1:1 to the U.S. Dollar. The bill, if passed by the House of Representatives, would provide stablecoin issuers with a clear path to regulatory compliance, benefiting Coinbase's substantial stablecoin business, which accounted for 15% of its total revenue in Q1 of 2025.

Additionally, Coinbase became the first U.S. exchange to receive regulatory approval in the European Union, obtaining its Markets in Crypto Assets (MiCA) license in Luxembourg. This approval allows Coinbase to offer crypto services across all 27 EU member states, further solidifying its position in the global market.

Investor sentiment was further bolstered by a report from Bernstein, a global equity and research brokerage firm. Analyst Gautam Chhugani raised the stock’s price target from $310 to $510 by the end of 2027, a 65% increase. Chhugani described Coinbase as "the most misunderstood company in our Crypto coverage universe," highlighting its dominant position in the U.S. crypto trading market and its extensive stablecoin business.

Chhugani also noted that Coinbase's acquisition of Deribit, the largest global crypto options exchange, and its operation of the largest and fastest chain, Base, on Ethereum, further strengthen its market position. He also mentioned that the upcoming CLARITY act, which focuses on the role of government agencies in regulating cryptocurrencies, could provide additional benefits for Coinbase.

Devin Ryan, an analyst at Citizens Bank, echoed Chhugani's sentiments, stating that despite the recent stock surge, the market has not fully appreciated the full extent of Coinbase's strategic advantages. Ryan believes there is still room for further growth, indicating that investors may continue to see value in Coinbase's stock as regulatory clarity improves and the company's market position strengthens.