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
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity StakeESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
Stocks Rally on Apple Strength: Stock Market Today
The iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
What to Know About Multisector ETFsMultisector bond funds allow investors to pick and choose among a wide array of assets.
-
I'm an Estate Planning Attorney: These Are the Two Legal Documents Everyone Should HaveEvery adult should have a health care proxy and power of attorney — they save loved ones time, money and stress if a sudden illness or injury leaves you incapacitated.
-
I'm a Financial Professional: Here's My Investing Playbook for Political UncertaintyFor successful long-term investing in a politically charged environment, investors should focus on economic data, have a diversified portfolio and resist reacting to daily headlines.
-
Rally Pauses for Hot Earnings, Cool Data: Stock Market TodayMarkets were mostly mixed Tuesday after decisive moves Friday and Monday.
-
The Truth About the Dark Side of Rooftop Solar PanelsRampant bankruptcies in the solar panel industry have left many consumers with systems that don't work and no way to get them fixed. Worse, they're being hounded to keep paying despite not receiving what they were promised. What can they do?
-
Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client StrategiesHere are several ways financial professionals can help their clients maximize opportunities in the One Big Beautiful Bill Act, which extends key TCJA provisions, introduces increased deductions for people 65 and older and more.
-
Dow Rises 585 Points on Rate Cut Hope: Stock Market TodayStocks moved more than 1% again Monday, this time to the upside following the Jobs Friday sell-off.
