The post Coinbase Stock +11%: The SEC Pivot’s Biggest Winner appeared on BitcoinEthereumNews.com.
The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Bitcoin jumped as much as 8 percent on August 19, but the real outlier of the day was on the Nasdaq: Coinbase stock (COIN) gained around 11 percent, according to 24/7 Wall St. Only the far more volatile bitcoin treasury names such as Strategy and Bitmine did better, each up 13 percent. For comparison, bitcoin itself closed the evening 5.8 percent higher at $68,361 (CoinMarketCap, 9:45 p.m.). There is a logic to the shares of a trading platform rising faster than the asset being traded: Coinbase gains twice over on each of the day’s three triggers. Why Coinbase Is the Leveraged Play on the SEC Pivot The August 19 rally had three drivers: doubled US Treasury buybacks, the SEC’s first token rulemaking proposal of its own, and the crypto summit at the White House, where Coinbase representatives sat at the table alongside SEC chair Paul Atkins and CFTC chair Mike Selig (the details are in our market overview for August 19). For Coinbase, all three feed straight into the business model: More liquidity means more trading. Coinbase earns on every transaction. Rising prices and rising volumes drive core revenue directly, and on August 19 bitcoin alone traded $36.5 billion within 24 hours. Clear token rules mean more products. The SEC proposal would exempt token-based capital raises of up to $75 million a year from full securities treatment. Every project that reaches the US legally on that basis is a potential new listing, and listings are Coinbase’s raw material. A seat at the table means predictability. For years the SEC was Coinbase’s largest litigation risk. When the same agency proposes rules instead of filing suits, and…
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