Coinbase’s regulatory woes in US far from over, analysts opine
Berenberg Capital analysts opine that Coinbase still faces significant regulatory challenges in the United States despite Ripple’s recent legal victory.
They argue that Coinbase’s suspending its staking service in four states could send negative signals to regulators, potentially leading to further scrutiny.
Judge Analisa Torres’ ruling last week that XRP sales across exchanges do not qualify as securities contracts or offerings has renewed confidence in the global crypto space. Some experts predict the judgment could classify other crypto assets as non-securities.
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Ten states have sued Coinbase concerning its crypto retail staking services.
As such, analysts at Berenberg Capital Markets, a FINRA-registered broker-dealer in New York, suggest that Coinbase’s suspension of its staking service in some U.S. states could indicate guilt and prompt more scrutiny from the SEC.
Despite its legal challenges, Coinbase remains optimistic and committed to pushing for clearer regulations in the U.S.
Coinbase CEO Brian Armstrong will meet with U.S. House Democrats on July 19 to discuss crypto regulation and web3 space.
At the time of writing, Coinbase’s COIN stock price is hovering around $104.80, down 0.71% in the market after hours, according to Google Finance.
Last week, Cathie Wood’s ARK Invest took profit on some of its COIN holdings following the stock’s XRP-fueled rally.