CLARITY Act ‘big potential positive catalyst’ for Coinbase, Robinhood, says BofA

BofA analyst Craig Siegenthaler sees “an asymmetrical setup” with crypto prices and volumes and the stock prices of both Coinbase (COIN) and Robinhood (HOOD), in part due to the potential passage of the CLARITY Act, adding that the firm places a probability of 50% on passage before the November mid-terms. While stronger near-term volumes will benefit the stocks and EPS estimates, the firm is “more positive” on what CLARITY will do for long-term adoption in the U.S. among both individuals and institutions, adds the analyst, who expects cryptocurrency prices to appreciate significantly if the Act passes and anticipates a significant acceleration in crypto volumes at the crypto exchanges and brokers which could increase significantly from current levels. The firm has Buy ratings on Coinbase and Robinhood.