HOOD jumps 11% as Trump pushes the Clarity Act to classify most crypto as commodities. Goldman Sachs raises target to $123. Sector-wide rally lifts Coinbase, MARA.
Shares of Robinhood Markets jumped more than 11% in Friday's premarket session, hovering near $109. The move came after President Trump publicly urged Congress to pass the Clarity Act, a bill that would classify most digital currencies as commodities rather than securities.
The legislation would split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. A clear legal framework for crypto has been absent in the U.S., deterring some institutional and retail investors. Trump's push followed a White House meeting on Aug. 19 with crypto industry leaders, signaling the administration's focus on digital asset rules.
Robinhood stands to benefit from regulatory clarity. The platform already offers crypto trading alongside equities. A defined rulebook could bring in users who have waited for legal certainty, several analysts said.
Chief Executive Vlad Tenev added to the momentum on Aug. 18 with an op-ed urging U.S. regulators to modernize securities laws for tokenized stock trading. He warned that the U.S. is losing ground to overseas markets, where tokenized stock volume has hit $9 billion in 2026 – an 800% year-over-year increase. The SEC is developing an “innovation exemption” that could allow round-the-clock tokenized equity trading on qualified platforms, according to regulatory sources. That framework aligns with Robinhood's existing capabilities.
Goldman Sachs raised its price target on HOOD to $123 and kept a Buy rating. The broader analyst consensus sits at $123.58, with 15 Buy ratings and three Hold ratings in the past three months. That target implies roughly 13% upside from Friday's level.
The rally spread to other crypto-linked stocks. Coinbase rose more than 7%. MARA Holdings , Strategy, and Circle Internet Group also gained. The broad move suggested the catalyst was sector-wide regulation, not a Robinhood-specific event.
Trading volume was below average. About 13 million HOOD shares changed hands, roughly half the three-month daily average of 26.77 million.
Before Friday, HOOD stock was down 5.85% year-to-date and 13% over the past 12 months. The company's latest quarterly results showed revenue up 32.5% and earnings that beat estimates.
AlphaScala gives HOOD an Alpha Score of 35 out of 100, with a Mixed label. That ranks it below the financials sector average.
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