Robinhood Markets (HOOD) rallied more than 11% on Friday, August 21, trading near $109 before the Wall Street open, after President Donald Trump publicly urged Congress to pass the Clarity Act. The proposed legislation would establish a clearer regulatory framework for digital assets by classifying most cryptocurrencies as commodities and splitting oversight between the SEC and the CFTC.
Trump's call followed an August 19 White House meeting with crypto industry executives, signaling that the administration is pushing to move digital asset legislation forward. The regulatory momentum lifted not just Robinhood but the broader crypto-linked equity complex, with Coinbase gaining roughly 7% to 9%, Strategy rising more than 6%, and Circle Internet Group climbing about 9%.
Adding to Robinhood's positive tone, CEO Vlad Tenev published a piece on August 18 urging U.S. policymakers to modernize securities laws to allow blockchain-based stocks to trade domestically. Tenev warned that tokenized equity trading volume globally has already reached $9 billion in 2026, up more than 800% year-to-date. The SEC is reportedly working on an innovation exemption that could permit approved platforms to offer 24/7 tokenized stock trading, a development that fits Robinhood's product strategy.
Goldman Sachs raised its HOOD price target to $123 while maintaining a Buy rating. The broader Wall Street consensus sat near $123.58 to $124.73, with a Strong Buy or Overweight stance, reflecting optimism about Robinhood's growth.
The stock move was also supported by a powerful Bitcoin rally. Bitcoin traded near $77,000, up sharply from around $62,800 at the start of the week. Spot Bitcoin ETFs attracted $606 million in inflows on Thursday, following $517 million a day earlier, with weekly inflows exceeding $1.6 billion, the strongest since October last year. CoinGlass data showed about $2.7 billion in crypto short positions were liquidated, accelerating the upward move.
The initial macro catalyst came from the bond market after the U.S. Treasury announced plans to double buybacks of longer-dated government debt, pushing Treasury yields lower at midweek and easing pressure on risk assets. However, long-term yields later resumed their climb, with the 30-year yield around 5.246% on Friday, posing a potential headwind for speculative assets.
Despite the rally, Robinhood shares remained down about 5.85% to 8% year-to-date before Friday, and valuation remained a key concern. The stock traded at a forward non-GAAP price-to-earnings ratio around 38.3, well above the sector median of 11.34. Analysts remain divided: Fundstrat's Tom Lee reportedly included HOOD among stocks to avoid in 2026, while others, including Capital Wealth Planning's Kevin Simpson and Requisite Capital Management's Bryn Talkington, defended the company's crypto exposure and long-term growth. Robinhood reported second-quarter revenue up 32% year-over-year to a record $1.3 billion, with earnings per share up 48% and record net deposits of $22 billion.
Bitcoin's Relative Strength Index climbed to about 85, its highest since November 2024, according to Invezz market analyst Crispus Nyaga, suggesting the rally may be overbought in the near term. Still, institutional demand and regulatory progress provided a stronger foundation than short covering alone, leaving the crypto market and crypto-linked equities with positive momentum into the close of the week.
