Coinbase Upgraded to Buy From Neutral on Improving Regulatory Risk: Citi
Crypto exchange Coinbase is expected to benefit from an improving U.S. regulatory environment following the presidential election and the Supreme Court's overturning of the Chevron precedent, according to a research report by Citi. The bank upgraded Coinbase to buy from neutral and increased its price target to $345 from $260. The report suggests that Coinbase's stock could respond positively to these changes and increased confidence in its legal strategy. The launch of spot ether exchange-traded funds (ETFs) in the U.S. could also boost the crypto exchange, suggesting potential for more crypto ETFs, increased adoption of cryptocurrencies, and a larger custody revenue opportunity. The report also notes that a more benign regulatory backdrop could unlock sidelined institutional capital and investment, and increase collaboration between crypto-native and traditional finance.
