Coinbase Global (COIN) is "well positioned" to benefit from further blockchain adoption with more partnerships between traditional finance and crypto native ventures to come, Oppenheimer said in a Wednesday note.

The passage of a market structure bill such as the CLARITY Act, which could happen late in the year, is more important than a stablecoin bill for Coinbase, as it would bring in additional distribution channels and "unlock the animal spirit for altcoin trading," Oppenheimer analysts said.

Coinbase's ownership of 8.4 million shares of Circle (CRCL) could translate into an estimated $1.7 billion of pre-tax gain, as the cryptocurrency exchange captures over 50% of revenue from Circle and doesn't incur overhead cost for reserve income from the cryptocurrency USDC, the analysts said.

Regulatory clarity, the increased adoption of stablecoin, and the higher valuation of Circle improve Coinbase's outlook, the analysts said.

Oppenheimer maintained an outperform on the stock and raised its price target to $395 from $293.

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