Coinbase Global (NASDAQ:COIN) has filed a petition in a federal court in order to receive a response from the U.S. Securities and Exchange Commission (SEC) to a previous rulemaking request. The action of the cryptocurrency exchange is anticipated to intensify hostilities with the regulator.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The request is related to one that Coinbase made to the SEC in July 2022, asking it to specify when a digital asset qualifies as a security and to provide additional guidelines for the cryptocurrency sector. Despite being required by law to respond to such requests in a timely manner, the SEC has not done so as of yet.
Further, Coinbase said that the SEC’s decision is important for deciding the next course of action. In case the regulator rejects the plea, Coinbase would have the option to knock on the court’s door to challenge the same.
Cracks began to appear in their relationship after the SEC twice sent Coinbase a Wells notice—once in 2021 and once last month. The notice suggests that the SEC might press charges against Coinbase. In addition, shortly after submitting the rulemaking request last year, the company disclosed that the SEC had begun an investigation into its asset listing procedures and a few other products.
In addition, the SEC warned investors against purchasing crypto asset securities because they might not be in compliance with all relevant laws, including federal securities laws. In fact, since Sam Bankman-Fried’s cryptocurrency exchange, FTX, failed, SEC Chair Gary Gensler has been attacking the cryptocurrency market.
What is the Prediction for COIN Stock?
While Coinbase continues to face legal roadblocks, it is making efforts to strengthen its offerings. Earlier this month, it secured a license to operate in Bermuda and partnered with Transaction Network Services to enhance the efficiency and speed of the Coinbase Derivatives Exchange.
Turning to Wall Street, Coinbase has a Hold consensus rating. That’s based on seven Buys, seven Holds, and five Sells assigned in the past three months. The average price target of $65.93 implies 20.4% upside potential.
