According to reports, the Securities & Exchange Commission of the United States has agreed to dismiss their enforcement case against Coinbase Global Inc. (NASDAQ:COIN).
At the time this article was written, shares of the crypto company were up by more than 5,0%.
Brian Armstrong, the chief executive of the company spoke with CNBC this morning and called it an important development for COIN as well as the entire crypto market.
He added that it’s an indication the crypto industry is going to get a bit of regulatory clarity in the Trump Administration, after years of illegal attacks by “a small number of activists” from the previous administration.
Coinbase, a stock that may soon be included in the S&P 500 Index is currently down about 10% from its highest level for this year.
Trump 2.0 may be good for Coinbase
Brian Armstrong, the chief executive of Coinbase, expects the market to experience a domino effect as the SEC drops all “bogus” cases.
In 2023, the US regulator accused Coinbase operating an unregistered security exchange. The company had also been accused of failing to register their crypto-staking program at the time.
Gary Gensler, former chairman of the Securities & Exchange Commission (SEC), brought the suit.
It is expected that the new US government will be largely pro-crypto.
Please note that a representative of the SEC did not comment on Coinbase’s update Friday.
Coinbase has had a strong quarter.
Trump’s promises of an improved environment for crypto under his presidency helped Bitcoin pass the $100,000 mark in the weeks that followed the election.
Coinbase saw its revenue increase by 130% in the fourth quarter of this year compared to last.
Nasdaq listed firm topped Street expectations in Q4 fiscal year and painted a bright picture for the future as, “the opportunity before us is unprecedented and we are well-positioned to take advantage of the moment.”
Coinbase shares do not pay dividends at this time and, as a result, are unattractive to income investors.
Does COIN still make sense at the current price?
The stock of Coinbase is up about 70% since early September, but Wall Street still sees a significant upside for the shares.
Analysts call for an average increase of $336 in COIN’s stock price, indicating a potential gain of 25% from the current level.
Even the Street-high Target of $475 acknowledges that Coinbase’s shares could nearly double from this point, especially as Bitcoin continues reaching new milestones by 2025.
Blockstream’s chief executive Adam Back stated that BTC was in “early phases of a bull-market” on Friday.
The world’s biggest cryptocurrency has plenty of room to grow on account of the strong inflows from retail and institutions.
The post Coinbase: SEC to Drop Enforcement Case Against Crypto Exchange may be updated as new developments unfold
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