Crypto stocks are extending their gains in Friday’s pre-market session as investors respond to the SEC’s new exemption for trading tokenized U.S. stocks. The move follows Thursday’s recovery after the Senate failed to advance the CLARITY Act on September 15. Robinhood Markets (HOOD) is up 2.81%, while Coinbase (COIN) has gained 2% and Strategy (MSTR) is higher by 3.93% in pre-market trading.
The SEC Eases Rules for Tokenized Stocks
The SEC’s new exemption allows platforms to trade certain tokenized U.S. stocks on-chain for five years. The agency said the move is meant to support innovation while it considers broader rules for on-chain trading.
The move came shortly after the Senate failed to advance the CLARITY Act on Sept. 15. That setback had sent crypto stocks lower earlier this week. Coinbase, Strategy, and Robinhood all fell as investors reacted to the vote.
The SEC action has helped shift attention back to progress in crypto regulation. Coinbase and Robinhood are both involved in tokenized assets, making the new framework particularly relevant to their businesses.
Bitcoin Rebounds as Strategy Gets Another Boost
Bitcoin is also supporting the rebound in crypto stocks. The cryptocurrency has recovered to around $77,000, after falling below $76,000 earlier this week. Bitcoin held up even after the Federal Reserve raised interest rates by 25 basis points on Wednesday. The hike was the first since 2023 and lifted the federal funds target range to 3.75%-4.00%.
Strategy is getting an additional company-specific boost from Executive Chairman Michael Saylor. He said banks can lend against Bitcoin (BTC-USD) without waiting for Congress to pass new legislation.
The House Financial Services Committee also advanced the American Reserve Modernization Act on Sept. 16. The bill would direct the Treasury to maintain a Strategic Bitcoin Reserve and require qualifying Bitcoin to be held for at least 20 years.
Wall Street Sees Upside for All Three Crypto Stocks
According to the TipRanks Stock Comparison Tool, Strategy and Robinhood have Strong Buy ratings, while Coinbase has a Moderate Buy rating. Strategy has 70.36% analyst upside, followed by Robinhood at 24.43% and Coinbase at 15.71%.
