Berenberg has issued a new report on Coinbase following the Ripple lawsuit.
Berenberg, the Germany-based international investment bank, has released a new report on Coinbase after the Ripple lawsuit. The report highlights the regulatory risks and challenges that Coinbase is currently facing.
The recent court decision regarding Ripple made a dual distinction, ruling XRP as non-security in some sales instances and as security in others. Berenberg analysts express concern that certain offerings by Coinbase have been found to violate securities laws.
Berenberg analysts believe that Coinbase Earn, the platform offering staking rewards to users, could potentially be deemed a security. If any of the 10 states currently taking action against Coinbase view Coinbase Earn products as facilitating securities offerings, it could bolster the SEC’s case further.
Berenberg maintains “HOLD” recommendation for Coinbase with a price target of $39, but the stock is currently trading at $105.
Ark Invest, led by Cathie Wood, sold its Coinbase shares despite the Ripple case victory. Coinbase’s stock follows Bitcoin’s trend, and a negative decision on Coinbase could lead to a short-term Bitcoin price fluctuation.
However, no immediate ruling is anticipated in the Coinbase case.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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