In the crypto market, all eyes are now on what's happening in Washington, D.C. A comprehensive piece of new crypto legislation, the Digital Asset Market Clarity Act, was supposed to be signed into law this year before Congressional lawmakers headed off for their long summer recess.
That didn't happen, so now the crypto industry is doing everything it can to ensure that it passes later this year. That included a meeting of top crypto executives at the White House, and a full-throated endorsement of the Clarity Act by President Donald Trump.
As a result, optimism is now building for passage of the legislation, and the Crypto Fear & Greed Index has suddenly flipped into "extreme greed" territory. With that in mind, the following three crypto stocks need to be on your investment radar.
Coinbase
First up is Coinbase Global (COIN +4.28%), which stands to be one of the biggest beneficiaries of the Clarity Act. For good reason, shares of Coinbase immediately shot up by 8% in the aftermath of the White House meeting.
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The Clarity Act will benefit Coinbase in two different ways. It will make it easier for Coinbase to roll out new trading products tied to digital assets. Coinbase has already moved into perpetual futures and prediction market contracts, as it races to become an exchange for a wide array of digital assets. So it's absolutely vital that Coinbase gets the green light to move ahead with other product launches, including new financial derivatives and new tokenized assets.
Coinbase will also benefit because it is helping to build out the back-end infrastructure for the crypto market. So any piece of legislation that increases the pie for the entire crypto industry is going to be a big win for Coinbase as well. Coinbase has a proprietary blockchain called Base, which has been key to the company's growth in decentralized finance (DeFi).
Circle
Another top crypto stock is Circle Internet Group (CRCL +4.90%). This company is the issuer of the popular USDC (USDC +0.00%) stablecoin, and is leading the push to standardize the world of stablecoin finance.
Importantly, the Clarity Act includes important provisions on stablecoins, including rules on how crypto staking rewards can be paid out. This is a contentious issue, given that the traditional banking industry very much views stablecoins as a threat. If crypto companies can pay out relatively high staking rewards to stablecoin owners, money might begin to flow out of traditional banking deposits and into crypto.
NYSE: CRCL
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So, if the Clarity Act facilitates payment of staking rewards, it could be very good news for Circle. The more USDC that is in circulation, the more money that Circle makes. For good reason, then, shares of Circle advanced by 10% on the basis of newfound positive sentiment around the Clarity Act.
Robinhood
Finally, there's Robinhood Markets (HOOD +8.17%). Many investors may think of Robinhood primarily as a platform for trading equities, but crypto is now big business, as are prediction markets.
Robinhood is also building out its own blockchain-powered infrastructure for faster, cheaper, and more efficient asset trading. This includes the launch of a brand-new blockchain, known as Robinhood Chain, that has been optimized for trading tokenized assets -- cryptos that represent the ownership of things like stocks, bonds, real estate, and more.
NASDAQ: HOOD
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However, tokenized assets are still very much in a gray area with regulators. So, retail trading platforms stand to benefit from any clarity the Clarity Act can provide, especially if regulators decide these digital assets fall under the purview of the Commodity Futures Trading Commission (CFTC), not the Securities and Exchange Commission (SEC).
What could possibly go wrong?
Keep in mind: Just because the Clarity Act has the support of the White House and the crypto industry does not mean that it is guaranteed to pass in 2026. The banking industry is strenuously opposed to some terms of the proposed legislation, and Congressional Democrats are saying they won't pass the legislation if it doesn't include strong ethics provisions to keep the Trump family from profiting on its many crypto ventures.
Add in the fact that midterm elections are coming up, and there's remarkably little time for Congress to act in 2026. Right now, the odds of passing the Clarity Act by Jan. 1, 2027 are about 20% on online prediction markets.
Still, if you're willing to accept the risks, then it could be worth taking a closer look at Coinbase, Circle, and Robinhood. If the Clarity Act passes, all three are likely to soar.
