As the regulatory conditions within the United States continue to evolve favorably, the cryptocurrency industry is anticipated to integrate more seamlessly into the financial mainstream. According to a recent report by Bernstein, Coinbase (COIN) is excellently placed to leverage these regulatory advancements.
On Monday, Bernstein began covering the digital asset exchange, assigning it an outperform rating and a $310 price target. Despite a 2% fall to $185.20 in early trading, the overall outlook remains positive.
While the report acknowledges that regulatory clarity will inevitably introduce more competition from fintech firms, brokers, and banks, it also predicts a “strong bull market and increasing U.S. onshore dominance” to balance out any market share and pricing pressures. This forecast was given by a team of analysts led by Gautam Chhugani.
The current administration under President Donald Trump is creating an encouraging regulatory scene for digital assets, vowing to transform the U.S. into the “crypto capital of the world”. The Securities and Exchange Commission (SEC) has established a new crypto task force, headed by Commissioner Hester Peirce, to draft fresh regulations for the sector.
The Bernstein report commends Coinbase for its efforts to diversify beyond trading. The exchange now significantly contributes to the U.S. dollar stablecoins market and offers crypto yield services, like staking. The report anticipates that Coinbase will increase its non-trading revenues by an estimated 31% compound annual growth rate (CAGR) from 2024 to 2026, providing a “strong balance to the cyclicality of trading revenues”.
Earlier this month, Coinbase secured registration with the Financial Intelligence Unit (FIU), setting the stage for its re-entry into the Indian market, as reported in a company blog post.
