Coinbase (COIN) rose 17% on June 18, 2025, making it the biggest gainer on the S&P 500.
What caused it?
The GENIUS Act, a historic bill that regulates stablecoins, was passed by the U.S. Senate on Tuesday, June 17, 2025.
This law is a big deal for Coinbase because it makes investors more confident. As a result, Coinbase’s stock closed at $295.29, which showed that investors were confident in the company.
Let’s look into why Coinbase is doing so well right now and what it means for the crypto giant.
The GENIUS Act: A Big Deal for Coinbase
The GENIUS Act sets clear rules for stablecoins at the federal level. Digital currencies that are pegged to the U.S. dollar, such as USDC, are referred to as stablecoins. Coinbase, which helped start USDC with Circle, directly benefits.
The bill says that virtual currencies must be backed by high-quality assets and that audits must be done every month. The legislation gives Coinbase a clearer picture of the rules, which lowers the risks of running their business in a highly volatile environment.
This clarity makes Coinbase’s stock go up because investors see the company’s growth potential.
The Act also makes Coinbase the leader in a $256 billion market for stablecoins.
Coinbase’s Strategic Role in Stablecoins
By working with Circle, Coinbase gets more exposure to stablecoins. USDC makes a lot of money because its market cap is $61.4 billion.
Coinbase gets half of Circle’s USDC reserve profits, which mostly come from Treasury securities. This source of income gives Coinbase more than just trading fees. Coinbase also makes money by allowing USDC transactions on its platform.
The GENIUS Act makes people more likely to use stablecoins by building trust in them. Because of this, Coinbase’s trading volumes and fees are going to go up.
Coinbase Payments, which works with Shopify, also uses USDC to make transactions easy. This new idea makes Coinbase’s position in the market stronger.
The mood of the market and Coinbase’s momentum
After the GENIUS Act, people started to feel more positive about Coinbase. Genco, a crypto trader, said that Coinbase has a lot of USDC integration. He called it “Stablecoin Summer” because the market was so excited about it.
Many people were happy about Coinbase’s stock rise, and posts on X (formerly Twitter) echoed this. For example, Coinbase’s Chief Legal Officer praised the Senate’s support from both parties.
This positive news caused Coinbase’s stock to hit a monthly high. However, Coinbase’s stock remains 13% lower than its peak value of $349.75 reached in December 2024.
The 17% increase in Coinbase’s stock this year shows that the company is gaining momentum. Investors now see Coinbase as a stablecoin beneficiary, which is what caused its rise.
Coinbase’s Problems and Risks
Coinbase is still having problems, even though business is booming. Regulatory scrutiny continues, and the costs of compliance are going up. The GENIUS Act has strict rules that call for strong infrastructure.
To meet these standards, Coinbase will have to spend a lot of money. Also, lower interest rates could affect the profits of USDC reserves.
Analysts say there is a 57% chance that rates will go down by September. Such an outcome could hurt Coinbase’s net interest income, just like it does for regular banks.
Also, there is competition from big tech companies like Amazon. These companies might get into the stablecoin business, which would be bad news for Coinbase.
Coinbase’s well-established infrastructure gives it an advantage, though.
Coinbase wider impact on crypto
Coinbase has an impact on the crypto world beyond just stablecoins. Its custody and staking services bring in more money.
Coinbase’s pursuit of tokenised equities also shows that it is trying to be innovative. The company wanted the SEC’s approval for this project because it wanted to enter new markets.
Additionally, Coinbase’s potential $2.9 billion acquisition of Deribit could enable the company to offer a wider range of derivatives.
These steps make Coinbase a major player in the crypto world. The GENIUS Act makes this even stronger, encouraging institutions to adopt it. Coinbase’s platform will get busier as more people use stablecoins.
Because of this, Coinbase’s stock price and revenue could go up even more.
What this means for investors and Coinbase future
Coinbase is a fantastic chance for investors. The GENIUS Act makes rules less confusing, which makes people more confident. This optimism is reflected in Coinbase’s stock price, which rose 17% in 2025.
But its $903.19 return on a $1,000 IPO investment shows that it can be volatile. Investors should think about dollar-cost averaging into Coinbase or ARKW ETFs.
At the same time, traditional payment giants like Visa saw a 5% drop, which is a sign of trouble. Coinbase’s focus on stablecoins gives it an edge in the market. Coinbase’s ability to change will decide how well it does in the future.
With the help of regulations, the largest crypto exchange in the United States (US) is ready to grow.
Conclusion: Coinbase Future Looks Bright
Coinbase’s 17% rise shows how important it is to the growth of cryptocurrencies.
The GENIUS Act opens up the possibilities for stablecoins, which is excellent news for the crypto trading platform. Its USDC partnership, new ways to pay, and smart purchases all help it grow.
Even though the crypto exchange has to deal with things like rate cuts and competition, its infrastructure is strong. Coinbase is at the front of the pack as stablecoins change the way money works.
Everyone who trades or invests should closely monitor Coinbase. Coinbase’s rise is just getting started, thanks to clear rules and a strong market.
The big crypto company is ready to change the way we think about financial innovation.
1 Comment
Great article! Thanks for sharing.