Crypto Rules Ignite Coinbase Stock Rally — Is It Time to Buy?

Crypto giant Coinbase (COIN) stock surged more than 16% on Wednesday after U.S. lawmakers passed the GENIUS Act — a new bill that brings clear rules for stablecoins. These digital assets, tied to the U.S. dollar, are widely used for fast, low-cost payments across the crypto space. The law removes a major cloud of regulatory uncertainty, and investors responded.

The sharp rally pushed Coinbase shares to their highest level in months. The stock is now up over 15% in 2025, though it still trades about 13% below its December 2024 peak. The 16% surge, along with clearer rules and signs of long-term growth, has prompted many investors to take another look at Coinbase. Even so, short-term risks remain. Crypto stocks are known for sharp swings, which is why many Wall Street analysts remain cautious.

New Law Unlocks $2 Trillion Opportunity

The new law also opens the door for a wider range of issuers, including banks, fintech companies, and large retailers, to launch their own stablecoins.

U.S. Treasury Secretary Scott Bessent, who now has broad oversight under the bill, believes the stablecoin market could grow nearly eightfold to more than $2 trillion in the coming years. That kind of growth could bring more users and trading activity to platforms like Coinbase.

Why This Matters for Coinbase

Coinbase is closely involved in the stablecoin market, especially through USDC (USDC), a digital dollar it co-founded with Circle Internet Group (CRCL). Until now, the lack of clear rules made many big firms and investors cautious. With this new legal clarity, that could quickly change.

If stablecoin use increases, from retail users or large institutions, Coinbase stands to benefit. More users mean more trading activity, higher fees, and broader demand for the company’s services.

Coinbase Eyes Stock Tokens

In addition, Coinbase is working to enter a new space: tokenized equities — stocks that are turned into digital tokens for faster, cheaper trading. These are stocks turned into digital tokens, which can offer faster settlement, lower costs, and easier access across borders. Coinbase has recently asked the SEC for approval to offer these assets.

Barclays analysts believe tokenized stocks could make trading faster and more efficient, while also bringing in new users. For Coinbase, this opens the door to expand beyond crypto and offer a wider range of digital assets.

Is COIN Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on 13 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average COIN price target of $268.70 per share implies 9% downside potential.

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