Coinbase Could See Growth Boost from Potential GENIUS Act Passage, Analysts Suggest

Key Points

1. Coinbase's stock price approached $400, reflecting investor confidence, with a market capitalization exceeding $100 billion and a 60% stock price increase over the past period.

2. The GENIUS Act, if passed, could serve as a catalyst for Coinbase's growth, particularly due to its revenue-sharing agreement with Circle, the issuer of USDC stablecoins.

3. Approximately 50% of Circle’s USDC reserves revenue flows to Coinbase, enhancing its income and supporting its expansion in stablecoin-related services.

4. Analysts highlight Coinbase’s 76.45% year-over-year revenue growth and an 85.25% gross profit margin as key metrics justifying its premium valuation.

5. Coinbase’s inclusion in the S&P 500 index earlier has provided additional support for its stock performance.