Crypto Stocks Rise After CFTC Action

Robinhood (HOOD) and Coinbase (COIN) closed the final trading session of the week in positive territory, with Robinhood’s stock leading the gains following regulatory developments that could broaden the U.S. market for crypto derivatives. Robinhood shares surged approximately 11% on the day, closing around $94 per share, the highest level since February. Coinbase (COIN) also saw significant gains, rising nearly 7% to finish the session near $189. This price point falls within the stock’s consolidation range of roughly $160 to $215, a band it has traded within since late March.

CFTC Fuels Rally for HOOD and COIN

The rally for both companies was largely attributed to actions taken by the Commodity Futures Trading Commission (CFTC). On Friday, the agency announced it would permit U.S. firms to offer perpetual futures trading, potentially spurring new product launches and increased trading activity within the United States. In addition to this policy shift, the CFTC issued a no-action letter to Coinbase. This letter allows Coinbase’s U.S. customers to access the options and perpetuals the company already provides.

The impact of the regulatory moves extended beyond Coinbase. Other U.S.-based firms, including trading platform Gemini and Robinhood, which already offers the product in Europe, have indicated they are exploring perpetuals.

Mizuho analyst Dan Dolev characterized the opportunity as a “massive market opportunity,” adding that Coinbase and other firms could capture a share of trading activity currently concentrated in offshore venues.

Robinhood Price Targets Increase

Mizuho also raised its price target for Robinhood from $110 to $115. Separately, Citizens reiterated its “market outperform” rating and maintained a $155 price target.

Contributing to the positive sentiment was Robinhood’s plan to allow users to connect artificial intelligence (AI) agents to their accounts for trading and credit card purchases.

Robinhood also announced that customers will soon be able to instruct AI agents to trade equities in a separate account, with user-defined limits. Support for options, event contracts, futures, and other products is expected to be added later.