Coinbase (COIN) Stock Rises 4% as SEC Launches Tokenized Stock Framework

TLDR

• Coinbase stock fell 10.1% after the CLARITY Act failed a Senate procedural vote on September 15
• The Federal Reserve also raised interest rates by 25 basis points the following day, adding pressure
• The SEC announced a new framework on September 17 allowing blockchain-based trading of tokenized U.S. stocks
• COIN rebounded 3.74% to $170.40 on Thursday following the SEC news
• The average Wall Street price target for COIN is $201.31, implying 16% upside from current levels

---

Coinbase (COIN) has had a wild week, swinging from a 10% gain to a 10% loss and back again as regulatory headlines dominated sentiment.

Coinbase Global, Inc., COIN

COIN is currently trading at $170.40, up 3.74% on Thursday. The stock has lost nearly 50% of its value over the past 12 months, tracking a broader crypto market decline where Bitcoin has dropped around 34% in the same period.

On September 14, COIN surged more than 10% as investors anticipated a favorable Senate vote on the CLARITY Act, a piece of legislation that would have established clearer regulatory rules for the crypto industry.

That optimism quickly reversed. On September 15, the CLARITY Act failed to clear a Senate procedural vote, sending COIN down 10.1%. Circle dropped 11.5%, Robinhood fell 3.4%, and Strategy declined 5.4%. Bitcoin slid below $76,000.

The Federal Reserve added to the pressure a day later, raising interest rates by 25 basis points on September 16.

SEC Steps In With a New Framework

Two days after the CLARITY Act stalled, the SEC used its own authority to advance part of the crypto regulatory agenda.

On September 17, the SEC issued two conditional, five-year exemptions allowing certain blockchain trading venues and liquidity providers to facilitate trading in tokenized representations of U.S. stocks.

Under the framework, tokenized stocks must carry the same rights as underlying shares, including dividends and voting rights. Companies will also receive 30 days’ notice and can object to tokenization of their stock.

The framework takes effect immediately and could eventually allow for extended trading hours and blockchain-based settlement, features already common in crypto markets.

SEC Chair Paul Atkins said the exemption is “designed to resolve challenges that have prevented responsible innovation from taking root in the United States while providing investor protections and market integrity standards.”

Markets responded positively. Alongside COIN’s 3.74% rise, Circle gained 4.2%, Robinhood climbed 3.25%, and Strategy rose 5.22%. Bitcoin recovered to around $76,560, up 1.1%, while Ether gained 2.6% and Solana rose 3.2%.

Coinbase’s Business Holds Up

Despite the choppy price action, Coinbase has been gaining ground operationally.

In Q2, its share of global crypto trading volume rose to 10.3% from 9.1% in Q1, marking the third straight quarter of market share gains and the highest level in company history.

Prediction markets have also emerged as a fast-growing revenue line. Contracts and revenue from prediction markets rose 106% year-over-year in Q2, surpassing $100 million in annualized revenue.

Coinbase also cut headcount by 14% in May 2026 and narrowed its adjusted expense outlook for the full year to $4.2 billion to $4.45 billion, down from previous guidance of $4.25 billion to $4.6 billion.

The average price target from 28 Wall Street analysts currently sits at $201.31, implying upside of around 16% from Thursday’s price of $170.40.