Coinbase Global (COIN) stock jumped nearly 4% out of the gate Friday after the cryptocurrency exchange said that the Securities and Exchange Commission (SEC) has agreed in principle to dismiss its enforcement case against the company. However, at last check, shares had erased these gains to trade lower.
"We've always maintained that we were right on the facts and the law, and today's announcement confirms that this case should never have been filed in the first place," said Coinbase Chief Legal Officer Paul Grewal in a blog post. "This is a victory not just for Coinbase, but for our customers, the United States, and individual freedom."
In June 2023, the SEC charged Coinbase with operating an unregistered securities exchange, broker and clearing agency. It claimed Coinbase "made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Coinbase went public in April 2021. As part of that process, the SEC reviewed our business model and S1 disclosures and allowed us to go public," Grewal said. "Two years later, they sued us. That's despite absolutely nothing changing in our business model."
The dismissal of the lawsuit is still subject to Commissioner approval.
Is Coinbase stock a buy, sell or hold?
Coinbase Global has been one of the best stocks to buy since Donald Trump won the U.S. presidential election in November, nearly doubling in value on hopes of a more crypto-friendly administration. Unsurprisingly, Wall Street is bullish on the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for the financial stock is $330.38, representing implied upside of nearly 30% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Needham is one of those with a Buy rating on COIN stock, along with a $330 price target.
"We view Coinbase as an attractive way to play the growing crypto asset universe, which includes overlap in the high-growth areas of stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs), exchanges in spot/derivatives, and blockchains (Base)," wrote Needham analyst John Todaro in a February 14 note.
Todaro expects Coinbase's institutional business to become a larger trading segment as the crypto markets mature.
Related Content
-
Here's Why Walmart Deals are Better Than Amazon Prime DayWith sales for Walmart Deals and Amazon Prime Day running comparable on price, one factor separates them.
-
How to Get Rid of the Things Your Kids Don't Want While DownsizingWhether moving by necessity or choice, downsizing means deciding what to do with your stuff. Here's what to do if the kids and grandkids don't want it all.
-
Five Things You Can Learn From Jimmy Buffett's Estate DisputeThe dispute over Jimmy Buffett's estate highlights crucial lessons for the rest of us on trust creation, including the importance of co-trustee selection, proactive communication and options for conflict resolution.
-
I'm a Financial Adviser: For True Diversification, Think Beyond the Basic Stock-Bond PortfolioAmid rising uncertainty and inflation, effective portfolio diversification needs to extend beyond just stocks and bonds to truly manage risk.
-
I'm a Retirement Psychologist: Money Won't Buy You Happiness in Your Life After WorkWhile financial security is crucial for retirement, the true 'retirement crisis' is often an emotional, psychological and social one. You need a plan beyond just money that includes purpose, structure and social connection.
-
Recent Market Volatility Offers Valuable Lessons for InvestorsStocks will always rise and fall, but strategic investors can benefit through dollar-cost averaging, rebalancing in down markets and taking the long view.
-
Retiring Early? This Strategy Cuts Your Income Tax to ZeroWhen retiring early, married couples can use this little-known (and legitimate) strategy to take a six-figure income every year — tax-free.
-
Ditch the Golf Shoes: Your Retirement Needs a Side GigA side gig in retirement can help combat boredom, loneliness and the threat of inflation eroding your savings. And the earlier you start planning, the better.
-
The Best Aerospace and Defense ETFs to BuyThe best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet SpotConverting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
