The U.S. cryptocurrency industry witnessed several key developments on Wednesday (25th), further boosting market sentiment.
Key Regulatory Advancements
- FHFA Directive: The Federal Housing Finance Agency (FHFA) instructed government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac to incorporate cryptocurrencies into single-family mortgage risk assessment frameworks. This marks the first integration of digital assets into the U.S. housing finance system.
Stablecoin Milestones:
- World Liberty Financial (endorsed by former President Trump) announced an upcoming stablecoin audit and new crypto application.
- Fed Chair Powell acknowledged stablecoins' maturation and integration into mainstream finance during Senate testimony.
These developments followed the Senate's passage of the GENIUS Act – a stablecoin regulatory bill – propelling Bitcoin past $108,000 and Coinbase (NASDAQ: COIN) to record intraday highs.
Coinbase's Market Performance
Wednesday's Trading:
- Closed at $355.37 (0.6% below 2021's ATH)
- Intraday peak: $369.28 (new record)
- Year-to-date growth: 35.6%
- 52-week surge: 58.6%
Revenue Drivers
USDC Partnership:
- Earned $908M (53% of Circle's 2024 revenue)
- Q1 2025: $299M shared (50%+ of Circle's quarterly revenue)
Proprietary Stablecoin Business:
- Contributed 15% to Q1 2025 total revenue
Analyst Insights
Legislative Impact
Jeffrey Ding (Heskey Group) notes:
"The GENIUS Act and Hong Kong's Stablecoin Ordinance signify regulatory maturation – enhancing consumer protection while providing legal clarity for innovation."
Mark Palmer (Benchmark Company) adds:
"Coinbase's diversified model outperforms Circle's. Potential passage of the Digital Asset Market Clarity Act could further amplify gains."
Wall Street Upgrades
Recent Ratings:
- 29 analysts assign "Moderate Buy"
- Notable Adjustments:
| Analyst | Firm | New Target | Upside |
|---|---|---|---|
| Gautam Chhugani | Bernstein | $510 | 65% |
| Devin Ryan | Citizens Bank | $400 | 12.6% |
| Mark Palmer | Benchmark Company | $421 | 18.5% |
Chhugani's Take:
"Coinbase is crypto's most misunderstood gem – dominating U.S. trading, running top stablecoin operations, and owning Deribit (leading crypto options exchange)."
Strategic Expansion
EU Market Entry:
- Secured MiCA license (first U.S. exchange approved in EU)
- Enables services across 27 member states
ETF Holdings:
- 235 U.S.-listed ETFs hold COIN shares
- Double-digit weight in crypto-focused funds (BKCH, IBLC, BITQ)
Blockchain Innovation:
- Seeking SEC approval for stock trading via blockchain
FAQs
Q: Why are analysts bullish on Coinbase?
A: Diversified revenue streams, regulatory tailwinds, and market dominance justify optimism.
Q: What risks does Coinbase face?
A: Regulatory shifts and crypto market volatility remain key challenges.
Q: How does the GENIUS Act benefit Coinbase?
A: Legitimizes stablecoins while clarifying operational requirements – reducing legal uncertainty.
👉 Discover how Coinbase maintains industry leadership
This analysis combines fundamental strengths with emerging opportunities, positioning Coinbase for sustained growth.