Coinbase Stock Swings After SEC Drops Lawsuit
Coinbase stock is bouncing between positive and negative territory Friday on news the SEC is dismissing its lawsuit against the the crypto exchange.
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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Estate Tax Quiz: Can You Pass the Test on the 40% Federal Rate?Quiz How well do you know the new 2026 IRS rules for wealth transfer and the specific tax brackets that affect your heirs? Let's find out!
-
'The 'Mamdani Effect' in New York: Can the City Afford a Millionaire Tax?State Tax Will higher income taxes drive the wealthy to flee New York in 2026?
-
The November CPI Report Is Out. Here's What It Means for Rising PricesThe November CPI report came in lighter than expected, but the delayed data give an incomplete picture of inflation, say economists.
-
The November CPI Report Is Out. Here's What It Means for Rising Prices
The November CPI report came in lighter than expected, but the delayed data give an incomplete picture of inflation, say economists.
-
5 Smart Things to Do With Your Year-End Bonus, From a Financial ProfessionalAfter you indulge your urge to splurge on a treat, consider doing adult things with the extra cash, like paying down debt, but also setting up a "fun fund."
-
Are You a Gen X Investor? Here's How You Can Protect Your Portfolio From an AI BubbleAmid talk of an AI bubble, what's the best course of action for investors in their 50s and 60s, whose retirement savings are at risk from major market declines?
-
Hey, Retirees: Put Your Charitable Gifts in a Donor-Advised Fund (and Enjoy Your Tax Break)A donor-advised fund is a simple (really!), tax-smart strategy that lets you contribute a large, tax-deductible gift now and then distribute grants over time.
-
Nasdaq Sinks 418 Points as Tech Chills: Stock Market TodayInvestors, traders and speculators are growing cooler to the AI revolution as winter approaches.
-
The Rule of Compounding: Why Time Is an Investor's Best FriendDescribed as both a "miracle" and a "wonder," compound interest is simply a function of time.
-
If You're a U.S. Retiree Living in Portugal, Your Tax Plan Needs a Post-NHR Strategy ASAPWhen your 10-year Non-Habitual Resident tax break ends, you could see your tax rate soar. Take steps to plan for this change well before the NHR window closes.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
