Coinbase is riding high as it prepares to set a new stock record, driven by a confluence of favorable political winds and legislative developments. The cryptocurrency exchange giant is poised to hit unprecedented market highs amidst what the White House has dubbed “Crypto Week,” a testament to the crypto-friendly environment fostered under President Donald Trump’s administration. On Monday, Bitcoin surged past $123,000, reflecting the broader sector’s buoyancy. This surge has also been marked by significant market activity, as detailed in our recent coverage of a single trader being liquidated for $100 million.
Political Winds Favor Coinbase
Since the start of 2025, Coinbase has been on a trajectory that many analysts see as unparalleled in the sector. “No other company seems to be benefiting as much from the current political climate,” notes a recent report from Ned Davis Research. This political climate—marked by supportive regulators and recently resolved litigation with the U.S. Securities and Exchange Commission (SEC)—has seen Coinbase’s stock soar by 63% this year alone. As of Monday, COIN shares rose another 2% to $394.79, following a previous record close of $388.96. The company is now on the cusp of a $100 billion market cap. This aligns with a broader trend of crypto stocks experiencing a record-setting week, as explored in our article on Coinbase and other Bitcoin and crypto stocks soaring.
A pivotal moment for Coinbase arrived this February when the SEC dropped a lawsuit accusing it of operating as an unregistered securities exchange. This legal victory paved the way for Coinbase to become the first cryptocurrency firm to join the S&P 500, a move that significantly buoyed investor confidence. Now, as Congress deliberates on three critical bills to clarify crypto regulations, optimism among investors is palpable. The SEC’s strategic shift of crypto oversight to its Cyber & Technology unit, along with the repeal of a burdensome rule on crypto custody holdings, has further buoyed market sentiment.
Analysts Cautiously Optimistic
The horizon looks bright for Coinbase, with Benchmark Equity Research projecting that the company will soon be able to offer tokenized equities—a move that could transform the crypto trading landscape. CEO Brian Armstrong’s ties to the Trump administration are anticipated to play a crucial role in this development. An analyst from Benchmark commented, “The Clarity Act, which is aimed at boosting institutional confidence in digital assets, could be a game-changer for Coinbase.” The firm has maintained a Buy rating with a price target of $421.
However, not all experts are fully sold on the unbridled optimism. Some caution that the stock’s meteoric rise might already reflect the positive developments on the horizon. Owen Lau of Oppenheimer, while maintaining an Outperform rating, raised his price target slightly to $417. He noted, “There’s a 70% chance that the Clarity Act will pass, but even if the upcoming earnings report on July 31 doesn’t meet expectations, Coinbase’s underlying momentum should hold steady.”
Looking Beyond the Horizon
As the end of July nears, all eyes will be on Coinbase’s earnings report. Regardless of the short-term results, the long-term outlook appears promising, bolstered by legislative clarity and market confidence. Yet, the question lingers: Can this upward trend sustain itself amid the inherent volatility of the crypto markets? As the sector continues to evolve under Trump’s administration, Coinbase stands as a formidable player, poised to capitalize on every regulatory and market shift.
This unfolding narrative of Coinbase’s rise is a testament to the dynamic interplay of regulation, market forces, and corporate strategy. As we watch Coinbase soar, the broader implications for the crypto industry—and its investors—remain both exciting and uncertain.
Source
This article is based on: Coinbase: A Surprising Champion Of The Trump Trade, Eyes New Stock Records
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
