Coinbase shares could rise if the Clarity Act is passed in the United States, according to analyst Crypto Rover, who believes clearer regulation could remove one of the exchange’s biggest growth barriers.
Coinbase trades on the Nasdaq under the ticker COIN and is led by co-founder and CEO Brian Armstrong, a vocal supporter of clearer crypto legislation.
Why the Clarity Act Could Boost Coinbase Stock
Crypto Rover said regulatory uncertainty has limited Coinbase for years by restricting token listings, discouraging institutional investors and increasing compliance costs.
The Clarity Act could address those issues by defining the roles of the SEC and CFTC and clarifying how digital assets and trading platforms are regulated in the US.
Clearer classifications could allow Coinbase to list more tokens with less risk that regulators later treat them as unregistered securities. More listings could increase trading activity and revenue.
The law could also attract more institutional capital. Banks, asset managers and corporations have remained cautious because of unclear rules, while Coinbase is well positioned to serve that demand.
The analyst also argued that investors still view Coinbase mainly as a bet on trading volume, even though the company has expanded into custody, staking, derivatives, payments, stablecoins and the Base network.
USDC Could Support Recurring Revenue
Crypto Rover highlighted USDC as another important growth driver. Coinbase earns revenue through its relationship with Circle, and wider stablecoin adoption could create a larger source of recurring income outside trading fees.
However, he noted that the final legislation must preserve a profitable model for Coinbase and USDC. The company has previously opposed provisions that could weaken stablecoin rewards.
Why the Bill Matters Beyond Crypto
Journalist Laura Shin said the Clarity Act also matters from a geopolitical perspective. She argued that leadership in finance and technology plays an important role in maintaining US influence.
Christopher Perkins also pointed to an unusual provision linked to the Rewards for Justice program, which offers rewards for information leading to the capture of criminals.
He compared the idea to “neo-privateering,” a modern version of the historical practice in which governments authorized private actors to act against enemies.
For Coinbase investors, the main question is whether the final bill expands listings, encourages institutional participation and protects stablecoin economics. If it does, the legislation could strengthen the company’s long-term growth outlook.
