The cryptographic industry is expected to join the dominant financial current in the United States as the regulatory environment improves, and Coinbase (Coin) is well placed to benefit from these rear winds, the Bernstein broker said on a report on Monday.
Bernstein initiated the coverage of the crypto exchange with an outperformance note and a price target of $ 310. According to Factseet data, around 41% of Wall Street analysts have a purchase note on action, 7% and the rest. The shares dropped by $ 2% to $ 185.20 at the start of negotiations.
The regulatory clarity will lead to greater competition for Coinbase of Fintech companies, brokers and banks, according to the report.
However, a “strong bullish market and an increase in onshore domination” should more than compensate for the market share and the prices, have written analysts led by Gautam Chhugani.
A regulatory background improving under the new administration of Donald Trump is considered a huge back wind for digital assets, and the president has promised to make the United States the “cryptographic capital of the world”.
The Securities and Exchange Commission (SEC) has trained a new crypto working group led by Commissioner Hester Peirce to write new regulations for industry.
Coinbase did well to diversify beyond negotiation, according to the report, and the exchange now has a strong presence in the stablescoins of the US dollar and crypto return services, such as jalitude.
Bernstein said that he expects Coinbase to increase non-transfeiting income by approximately an annual growth rate composed of 31% (TCAC) between 2024 and 2026.
This provides a “solid balance to the cyclicity of commercial income”, added the report.
Coinbase recently obtained the recording of the CRF, paving the way for a return to the Indian market, said the company in a blog post earlier this month.
Find out more: Coinbase provides for the return of India after obtaining regulatory registration with the CRF
