Coinbase (COIN) shares surged more than 11%, boosted by the CLARITY Act and tokenized share issuance

Core Points

Base Network launches tokenized stock trading

Quarterly earnings are about to be announced

Coinbase shares rose sharply

On Tuesday, driven by regulatory developments and strategic product launches, Coinbase shares rose 11.2% to 12.3%, hitting an intraday high of $180.23.

Digital Asset Market Clarification Act makes progress

The Digital Asset Market Clarification Act is about to hold a key vote in the Senate, and President Trump personally met with lawmakers to fight for passage of the bill.

Base Network launches tokenized stocks

Base Layer 2 Network announced that it will soon launch a 1:1 anchored tokenized stock, a move that will allow Coinbase to directly challenge Robinhood.

Second-quarter earnings report is about to be released

Second-quarter 2026 financial results are scheduled to be released after the close of trading on July 30. Wall Street expects earnings per share to increase significantly compared with the same period last year. [TAG

Divergent market views

Wall Street remains divided on Coinbase, with an average rating of "hold" and consensus target price of $245.39, while the stock price is currently well below its 52-week high of $420.98. [TAG

Coinbase shares rose sharply on Tuesday, soaring 12.3 percent to $180.23 in early trading, up sharply from the previous session's close of $160.43. Shares in the cryptocurrency exchange touched a intraday high of $176.75 before extending gains further.

Coinbase Global, Inc. (COIN)

Market trading volume was approximately 2.6 million shares, significantly lower than the average daily trading volume of 10.5 million shares, indicating that the upward driving force came from investors 'firm confidence rather than widespread trading volume.

Positive factors: Bill promotion and product innovation

This increase is mainly driven by two important developments. The primary driver is progress on the Digital Asset Markets Clarity Act, which is moving towards a full Senate vote before Congress adjourns in August. According to reports, President Trump has met directly with senators to garner the support needed for the bill to pass.

If the bill is passed, it would establish the most detailed federal cryptocurrency regulatory framework in the world's major economies, clarify regulatory jurisdictions, and establish formal requirements for exchange registration and asset custody, which are directly aligned with Coinbase's business structure.

Base Network launches tokenized stock trading

The second catalyst comes from a strategic product plan.

Coinbase's Base Layer 2 blockchain has announced the imminent launch of its fully anchored tokenized equity product. In the past 12 months, the tokenized securities industry has quadrupled in size, reaching a total value of US$1.7 billion. The move puts Coinbase in direct competition with Robinhood, whose Robinhood Chain already offers stock token products. Robinhood shares also rose about 7.9% on Tuesday.

This development represents Coinbase's strategic expansion from a traditional cryptocurrency trading revenue stream to an emerging product category with huge growth potential.

Quarterly earnings report will be announced soon

Coinbase is scheduled to announce its second quarter 2026 financial results after the U.S. stock market close on July 30. Wall Street's consensus forecast shows earnings per share will improve significantly from the same period last year, and market participants appear to be planning ahead of the news.

The company's earnings report last quarter disappointed investors. In the first quarter, Coinbase lost $1.49 per share, well below analysts 'expectations for a profit of $0.06 per share. Total revenue of $1.41 billion also missed the forecast of $1.49 billion, down 30.5% from the same period last year.

This background makes the financial report to be released on July 30 particularly worthy of attention. After a difficult first quarter, market expectations were relatively moderate and the overall market environment has improved.

The overall stock market also provided support for market sentiment, with the S & P 500 index rising 0.87% on the same day and the Nasdaq index rising 1.31%.

Analysts 'Views Divide

Wall Street analysts have mixed views on Coinbase's prospects. Barclays Bank maintains an "underweight" rating with a target price of $99. Piper Sandler recently lowered its target price to $155 while maintaining a "neutral" rating. Instead, Deutsche Bank gave a "buy" rating with a target price of $208. Jefferies raised its target price to $181 while maintaining a "hold" rating.

Among 33 analysts, the consensus target price is $245.39, which includes 18 "buy" ratings, 12 "hold" ratings and 3 "sell" ratings.

Despite Tuesday's sharp rise, Coinbase shares are still well below the 52-week high of $420.98 and are currently trading at about 43% of that high.

Insiders 'reduction and institutional positions

In recent months, company insiders have mainly reduced their holdings. In the past 90 days, insiders have sold a total of 30,627 shares with a total value of approximately US$5.3 million, with all transactions executed through a pre-defined 10b5 -1 trading plan.

Institutional investors and hedge funds together hold 68.84% of outstanding shares. Recent buyers include Mizuho Markets Cayman and Axxcess Wealth Management.