Coinbase's Stock a 'Hold' Amid Regulatory Risk, Says Berenberg Analysts
According to Berenberg Capital Markets analysts, Coinbase's recent regulatory issues make its stock a "hold." The firm initiated coverage of the crypto-linked equity with a price target of $55 per share, while Coinbase closed at around $57.90 a share. Berenberg's neutral view on the stock is due to the regulatory environment for crypto in recent months, particularly the rising tensions between Coinbase and the SEC. The firm estimates that about 37% of Coinbase trading fee revenue comes from non-bitcoin assets, which could have exposure to regulatory risk.
Coinbase's relisting of XRP could affect pending litigation if Ripple loses SEC lawsuit, says attorney Jeremy Hogan
Lawyer Jeremy Hogan has warned that Coinbase could face negative consequences in its pending litigation if it relists XRP before the SEC vs. Ripple lawsuit is resolved. Hogan believes that if Ripple loses the lawsuit, Coinbase would be put on the back foot. Coinbase delisted XRP after the SEC charged Ripple with violating securities laws. The SEC has responded to Coinbase's writ of mandamus, stating that it is not in a hurry to establish rules for crypto and will continue to use enforcement actions instead of rulemaking.
Massive Withdrawal of ETH from Coinbase's cbETH Deposit Address Suggests Building Sell Pressure for Ethereum
Coinbase's cbETH has recently received a large influx of over 53,400 ETH, indicating that many people have terminated their ETH staking contracts, leading to sell pressure for Ethereum.
SEC Rejects Coinbase's Petition for New Regulatory Framework for Digital Asset Industry
The U.S. Securities and Exchange Commission (SEC) has rejected a petition by Coinbase requesting additional regulatory guidance for the digital asset industry. The SEC stated that Coinbase has not provided sufficient evidence to justify the creation of a new regulatory framework.
SEC Denies Coinbase’s Request for Clarity on Crypto Regulations
The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase's request for more clarity on cryptocurrency regulations. In response to Coinbase's petition for a Writ of Mandamus, the SEC filed a brief stating that it was not willing to provide any clarity on crypto regulations. The regulator argued that new regulations were unnecessary as digital assets are already considered securities. Coinbase had previously called for productive dialogue with the SEC, but the regulator's response indicates that they are not interested in cooperating with crypto firms.
SEC responds to Coinbase's call for clear crypto regulation, stating rulemaking may take years and enforcement actions will suffice for now
The U.S. Securities Exchange Commission (SEC) has responded to Coinbase's petition for clear crypto regulation, stating that any rulemaking may take years and that enforcement actions will suffice in the meantime. The SEC argued that it is not obligated to meet Coinbase's requirements and that the firm has called for a complex set of reforms and rule-making in a short amount of time. Coinbase's chief legal officer, Paul Grewal, said that the SEC's response has added further confusion to the vague treatment of crypto in the U.S. and that there is still a lot left needing clarification. The SEC also distanced itself from the comments and views of its chair Gary Gensler, who has been adamant that there are already sufficient rules in place.
SEC Chair Pushes Back Against Coinbase's Call for Digital Asset Rules
Gary Gensler, the Chair of the US Securities and Exchange Commission, has rejected Coinbase's request for the agency to propose and adopt rules for digital assets. Gensler stated that rules governing exchanges, broker dealers, advisers, custodying assets and how to register securities offerings already exist. He added that there is nothing about a new technology that makes it inconsistent with public policies. Coinbase filed a petition in July 2022 asking for the agency to propose and adopt rules for digital assets, while criticizing its "enforcement-first approach." The petition garnered support from the US Chamber of Commerce.
Uniswap Overtakes Coinbase Thanks to Pepecoin's Popularity and Coinbase's Hostile Stance Against Meme Crypto
The Uniswap decentralized exchange (DEX) has surpassed Coinbase in daily trading volume, potentially due to the popularity of Pepecoin (PEPE) and other meme coins. On May 4th, both Uniswap and Coinbase recorded approximately $1.2 billion in volume, but the following day, Uniswap's volume grew to $2.2 billion compared to Coinbase's $1.3 billion. Uniswap's support for multiple blockchains, including Ethereum, Arbitrum, Optimism, Polygon, Celo, and Binance Smart Chain, may also contribute to its popularity. Additionally, Coinbase's recent labeling of PEPE as a "symbol of hate" in a newsletter to customers may have caused some users to switch to Uniswap.
ARK Fund Increases Holdings in Coinbase to $663 Million Despite Recent Dip in Stock Value
May 14(Cointime) - ARK Fund has increased its holdings of 69,386 shares of Coinbase over the past week, bringing its total number of shares held to 10.9797 million, with a current market value of approximately $663 million. As of the past 24 hours, the Coinbase stock is trading at $57.34, reflecting a 4.99% decrease.
US SEC Prepares Enforcement Action Against Binance and Coinbase
The US Securities and Exchange Commission is reportedly taking enforcement action against Binance or Binance.US, the world's largest crypto exchange. Binance has faced enforcement action from the US CFTC and ongoing probes by the DOJ for violating sanctions against Russia. The SEC has sent a Wells notice to Coinbase, but Coinbase has stated that this will have no impact as it doesn't list securities. Binance has paused Bitcoin withdrawals due to congestion on the Bitcoin blockchain. Both Binance and Coinbase are under scrutiny from the US SEC.
