Coinbase (COIN) stock has skyrocketed, jumping almost 60% recently. This surge is fueled by positive developments in both US and European regulations, and increased optimism surrounding stablecoins.
European Expansion
Coinbase received a major boost after securing a license to operate across the entire European Union. This Markets in Crypto Assets (MiCA) license, granted by Luxembourg, allows Coinbase to offer its full range of crypto services to all 27 EU member states. They plan to establish their European headquarters in Luxembourg.
US Stablecoin Regulation
The US Senate’s approval of the GENIUS Act, aimed at regulating stablecoins, also contributed to the positive market sentiment. This legislation introduces a federal framework for stablecoin issuers, mandating full asset backing, regular reserve disclosures, and annual audits for larger issuers (those exceeding $50 billion in market cap).
Stablecoin Success Story
The recent successful public listing of Circle Internet Group (CRCL), the issuer of USDC and EURC stablecoins, further boosted investor confidence. CRCL’s stock saw a dramatic increase after its initial public offering.
Current Market Performance
At the time of writing, COIN is trading around $349, while CRCL is trading at approximately $205.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies or any other high-risk assets.