CFTC Actions Lift Robinhood and Coinbase Shares

Robinhood (HOOD) and Coinbase (COIN) finished the week's final session higher as U.S. regulators took steps that could broaden the domestic market for crypto derivatives. Robinhood led the gains, surging about 11% to close around $94 a share, its highest level since February. Coinbase climbed nearly 7% to end near $189. The move leaves COIN in the middle of its consolidation range of roughly $160 to $215, where it has traded since late March. Investors pointed to developments from the Commodity Futures Trading Commission (CFTC). On Friday, the agency said it would allow U.S. firms to offer perpetual (perps) futures trading, a shift that could support new product launches and increased activity in the U.S. market. The CFTC also moved the same day to issue a no-action letter to Coinbase. Under the regulator's guidance, the letter allows Coinbase's U.S. customers to access options and perpetuals the company already offers. Interest in perpetuals is spreading beyond Coinbase. U.S.-based firms including Gemini and Robinhood have indicated they are exploring the product. Robinhood already offers perpetuals in Europe. Mizuho analyst Dan Dolev described the day's developments as a "massive market opportunity," arguing that Coinbase and peers could capture trading volume that has largely taken place on offshore venues. Mizuho raised its price target on Robinhood to $115 from $110. Citizens reiterated its "market outperform" rating and kept a $155 target. Robinhood's recent product roadmap has also supported sentiment. The company plans to let users connect AI agents to their accounts for trading and credit card purchases. It also said customers will soon be able to direct AI agents to trade equities in a separate account, with user-defined limits. Support for options, event contracts, futures, and additional products is expected later, the company said.