What Happened?

Shares of blockchain infrastructure company Coinbase (NASDAQ:COIN) jumped 2.6% in the morning session after renewed optimism as a wave of positive regulatory developments in the U.S. suggested a more favorable environment for the digital asset market.

The move was primarily driven by a joint statement from the SEC and CFTC, which proposed allowing regulated U.S. exchanges to trade spot crypto assets directly. This potential policy shift could significantly reduce regulatory burdens for companies like Coinbase.

Further bolstering sentiment, U.S. lawmakers are reportedly advancing the Responsible Financial Innovation Act of 2025 to clarify oversight and cooperation between the two agencies. In a separate development, Congress also proposed a bill directing the Treasury to explore creating a Strategic Bitcoin Reserve. These crypto-friendly signals coincided with a broader market rally, as the total cryptocurrency market capitalization increased by 2%, crossing the $4 trillion mark.

After the initial pop the shares cooled down to $312.38, up 3.4% from previous close.

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What Is The Market Telling Us

Coinbase’s shares are extremely volatile and have had 60 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 18 days ago when the stock gained 7% on the news that Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut, which boosted investor appetite for riskier assets like cryptocurrencies. The positive turn in sentiment came after Federal Reserve Chair Jerome Powell's speech in Jackson Hole, where he hinted at the possibility of an interest rate cut as soon as next month. This news revived investor appetite for risk assets, benefiting the cryptocurrency market broadly.

Coinbase is up 21.4% since the beginning of the year, but at $312.38 per share, it is still trading 25.6% below its 52-week high of $419.78 from July 2025. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $951.56.

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