The SEC just dropped its lawsuit against Coinbase (COIN), but not everyone is convinced it’s a win for crypto. Some are questioning whether this is a true regulatory shift or a political move tied to the industry’s hefty donations. According to Cointelegraph, Trump’s administration has received significant financial support from crypto players like Coinbase and Uniswap (UNI-USD). So, is Washington finally warming up to crypto, or is this just payback season?
Regulatory Uncertainty Still Looms
Even with the lawsuit dismissed, crypto companies aren’t in the clear just yet. The SEC’s stance on token securities remains murky, and industry insiders are waiting to see if the Commodity Futures Trading Commission (CFTC) takes over regulatory oversight. A shift to the CFTC could signal a more pro-crypto stance from Washington, but there’s no guarantee.
Stablecoin Regulation Could Be a Bigger Issue
A bigger issue might be stablecoin regulation and crypto’s access to banking. Many businesses struggle to open accounts due to perceived money laundering risks. If FinCEN updates its guidelines, banks may finally start treating crypto companies like legitimate businesses. Until then, the regulatory uncertainty continues.
Coinbase’s Rating Update Shows Market Uncertainty
As regulations change, analysts are reassessing Coinbase’s outlook. 5-star Barclays analyst Benjamin Budish maintained a Hold rating on COIN stock and set a price target of $328, according to TipRanks. The stock closed at $235.38 last Friday, meaning Budish’s target implies significant upside.
Other analysts are split on Coinbase’s trajectory. The stock holds a Moderate Buy consensus with a $341.83 average price target, suggesting a nearly 60% upside. Piper Sandler also maintained a Hold rating with a $310 target. Even though Coinbase is a key player in the crypto sector, the uncertainty surrounding U.S. regulation keeps analysts cautious.
Is Coinbase a Good Stock to Buy?
Analysts are cautiously bullish about COIN stock, with a Moderate Buy consensus rating based on 11 Buys and nine Holds. Over the past year, COIN has decreased by more than 10%, and the average COIN price target of $341.83 implies an upside potential of 59.6% from current levels.
