preCharge News BUSINESS — Coinbase (COIN) is the best-performing stock in the S&P 500 this June, buoyed by a trifecta of tailwinds: regulatory momentum, product rollouts, and its recent addition to the index at the end of May.

The rally extends beyond June, tracing back to April 8, the day after President Trump’s sweeping tariff announcement sent broader markets tumbling.

Now up 43% this month alone, Coinbase is tracking its third consecutive monthly gain and best performance since November 2021. Shares hit their highest point since Coinbase’s IPO on Thursday.

“The S&P 500 inclusion, the Senate’s passage of the GENIUS Act and strong Circle performance negated the false narratives for Coinbase,” said Owen Lau, analyst at Oppenheimer.

GENIUS Act, S&P Index Boost, and Earnings Strength Clear Headwinds

Stablecoin Legislation and Consistent Profits Reinforce Bull Case

According to Lau, Coinbase had been weighed down by two major investor concerns — fee compression and regulatory uncertainty — both of which are now dissipating.

“Coinbase has been generating positive earnings consistently… and the GENIUS Act is real policy momentum,” he said.

Passed by the Senate, the GENIUS Act creates the first federal framework for dollar-pegged stablecoins, empowering the U.S. Treasury and inviting banks, retailers, and fintechs into the space.

The Circle Connection: USDC Revenue Fuels Coinbase’s Future

100% of USDC Revenue Held on Coinbase Flows Back to the Exchange

Devin Ryan, head of fintech research at Citizens, said the market is underestimating Coinbase’s deep financial link to Circle.

Circle debuted on the NYSE on June 5, skyrocketing over 500% since. Thanks to a revenue share agreement:

“Coinbase keeps 100% of revenue from USDC held on its platform and nearly 50% of all other USDC revenues — which make up 99% of Circle’s total revenue,” Ryan said.

Stablecoin Ecosystem Expands With Major Partners

Amex, Shopify, JPMorgan Join Coinbase Crypto Network

Coinbase’s momentum isn’t just from trading. The exchange has diversified its product suite in recent quarters into custody, staking, wallets, and now payment infrastructure.

This month, Coinbase:

• Launched a crypto-backed credit card with American Express
• Partnered with Shopify to expand stablecoin payments
• Welcomed JPMorgan’s “deposit token” on its Base blockchain

Coinbase Seen as Proxy for Bullish Crypto Sentiment

Institutional Investors Looking for “Utility,” Not Speculation

“There’s a sentiment trade happening here,” said Ryan. “Institutional investors want exposure to a crypto ecosystem that’s evolving into utility, not just speculation — and Coinbase is the best way to express that thesis.”

Ryan pointed to increasing legislative clarity as the main catalyst behind this shift

Caution Flag: Crypto Trading Volume Still Sluggish

Altcoin Season Could Follow If CLARITY Act Passes

Not all is rosy. Coinbase’s crypto trading volume has been trending downward since April, according to Oppenheimer’s Lau.

However, he remains optimistic, especially if market structure legislation complements the GENIUS Act.

“If the GENIUS Act gave us ‘stablecoin summer,’ the CLARITY Act could trigger ‘altcoin summer,’” Lau said. “That would ignite risk appetite again.”

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Associated Press, CNBC News, Fox News, and preCharge News contributed to this report.