What Happened?

Shares of blockchain infrastructure company Coinbase (NASDAQ: COIN) jumped 3.8% in the afternoon session after the broader cryptocurrency market rallied as the U.S. House of Representatives passed three crypto-related bills, including the GENIUS Act, which aims to create a regulatory framework for stablecoins. 

This legislative momentum in Washington was seen as a significant step toward providing much-needed legal clarity for the digital asset industry. The positive sentiment lifted the entire crypto sector, with the total market capitalization surging toward $4 trillion. Major cryptocurrencies like Bitcoin and Ether also saw significant price increases. 

For Coinbase, the largest U.S.-based crypto exchange, this regulatory progress was perceived as a major tailwind, potentially reducing uncertainty and paving the way for wider adoption of digital assets. 

The news followed Coinbase's recent reveal of its upcoming 'super app,' called Base, designed to expand the utility of crypto beyond trading.

After the initial pop the shares cooled down to $422.75, up 3% from previous close.

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What Is The Market Telling Us

Coinbase’s shares are extremely volatile and have had 66 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 3% as the second quarter (2025) earnings season got off to a strong start. 

Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed. 

Investors were also encouraged by several positive reports that painted a picture of a resilient consumer. One key report revealed that shoppers increased their spending at U.S. retailers more than economists had anticipated. Precisely, retail sales increased 0.6% from May, surpassing the 0.2% estimate. This robust consumer spending is a crucial pillar supporting the economy. 

Adding to the positive sentiment, the latest data on unemployment claims showed a decrease in the number of workers applying for benefits, signaling that layoffs remain limited and the job market is steady. This combination of strong earnings reports, retail sales, and a solid labor market suggests the economy is navigating challenges successfully.

Coinbase is up 64.4% since the beginning of the year, and at $422.75 per share, has set a new 52-week high. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $1,288.

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