Vlad Tenev, the CEO of financial exchange Robinhood (HOOD), is optimistic about seeing stablecoin legislation getting passed this year, according to Yahoo Finance. Tenev’s optimism is due to the fact that there’s already a stablecoin bill circulating, while another one was introduced before the election. He also believes that lawmakers are now more aligned on this issue than they ever were before. In fact, top lawmakers like Republican Sen. Tim Scott, who leads the Senate Banking Committee, have announced a working group to speed up the timeline on digital asset legislation.
It is worth noting that Stablecoins, which are less volatile cryptocurrencies backed by U.S. dollars, are a key area of focus for Robinhood. Tenev thinks that the real challenge with stablecoins is finding a way to make users interested in them, especially in high-interest environments. He believes that investors would find stablecoins attractive if they could easily earn 4% on them. This would not only provide a reason to transact in stablecoins but also to keep money in them.
The introduction of a stablecoin would likely be another growth catalyst for Robinhood’s platform, which has already grown significantly thanks to its futures and index options trading, as well as its acquisition of crypto exchange Bitstamp. In addition, four-star Bernstein analyst Gautam Chhugani believes that the company’s business could grow by 10 times over the next 10 years by widening its product reach. As a result, Chhugani has a Buy rating with a $105 per share price target.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HOOD stock based on 12 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 327% rally in its share price over the past year, the average HOOD price target of $71.71 per share implies 19.24% upside potential.
