Coinbase stock surges on Bitcoin rally and Trump’s CLARITY Act push

Coinbase stock surged 4.5% on Wednesday following a historic Bitcoin short squeeze and renewed momentum around Trump’s push for the Clarity Act, a comprehensive cryptocurrency regulation bill set for a Senate procedural vote on September 15.

Shares of the cryptocurrency exchange climbed to $167.36 as Bitcoin rallied past $69,000, according to Benzinga Pro data. The gains came after crypto shorts lost between $1.1 billion and $2.16 billion in liquidations on August 19 and 20, a squeeze triggered by Bitcoin breaking above key resistance levels it had held below for weeks.

The stock movement reflects Coinbase’s strong correlation with Bitcoin performance. Coinbase shares have shown a 0.61 correlation with Bitcoin’s price over a one-year period, meaning the exchange typically gains when the broader crypto market rallies, since trading volume and transaction fees rise alongside asset prices.

On August 19, Trump hosted crypto executives at the White House, including Coinbase CEO Brian Armstrong, Robinhood CEO Vlad Tenev, and Ripple CEO Brad Garlinghouse, alongside top regulators. During the event, Trump called on Congress to pass a “fair version” of the Clarity Act, the Digital Asset Market Clarity Act, which would establish a federal regulatory framework for digital assets and clarify the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission.