H.C. Wainwright says SEC plan to dismiss suit lifts ‘major overhang’ on Coinbase

H.C. Wainwright analyst Mike Colonnese notes that Coinbase (COIN) announced that the Securities and Exchange Commission has agreed to dismiss its litigation against the company from June 2023, which alleged that the company offered unregistered “crypto asset securities” to investors and operated an unregistered securities exchange, broker, and clearing agency. The announcement “lifts a major regulatory overhang on shares” and sets an important legal precedent for the industry, says the firm, which would also expect the dismissal of Coinbase’s case to eventually lead to an expansion of the company’s staking business. The firm has a Buy rating and $350 price target on Coinbase shares.