Robinhood’s shares jumped 4.9% in pre-market trading on Tuesday after President Trump endorsed the Clarity Act, a proposed law that would classify most digital assets as commodities and split oversight between the SEC and CFTC.
The legislation, if enacted, would create a more favorable regulatory environment for tokenized stock trading, a market Goldman Sachs estimates reached $9 billion in global volume this year—a gain of more than 800% year-to-date. The bank lifted its price target on Robinhood to $123 from a prior level, maintaining a Buy rating. The average analyst price target now stands at $124.73 with an overweight consensus.
The rally followed a Monday meeting at the White House where Trump met with cryptocurrency industry executives, reinforcing expectations of policy progress. Robinhood CEO Vlad Tenev had published an op-ed on August 18 calling for modernization of securities laws to accommodate blockchain-based trading.
The proposed Clarity Act would also pave the way for an SEC “innovation exemption,” potentially allowing approved platforms to offer 24/7 tokenized stock trading. Peer crypto brokerage Coinbase surged in sympathy, reflecting broader optimism around crypto-related equities.
U.S. equity benchmarks showed modest gains, with the S&P 500 up 0.3%, the Dow 0.3%, and the Nasdaq 0.5%. Robinhood reported a 32.5% revenue increase and an earnings beat in its most recent quarter, providing additional support for the stock’s momentum.
