British banking giant Barclays said the U.S. court’s partial ruling in favor of Ripple was “incrementally positive” for Coinbase stock.
The U.S. Southern District Court recently ruled that Ripple’s XRP token should not always be considered a security. This partial win for Ripple has sent its stock price up nearly 30%.
Several Wall Street firms have now given positive outlooks on crypto exchange Coinbase (NASDAQ: COIN) following this ruling:
- Barclays said in a report that the ruling could mean “in some cases a token may not be a security,” providing “incremental clarity for future token issuances.” However, it kept an “underweight” rating on COIN stock.
- J.P. Morgan said Coinbase is “in the best position to benefit from the improved confidence and regulatory clarity” given its market position.
- Needham analyst John Todaro said the outcome should “moderately de-risk regulatory pressure” on Coinbase.
However, not all analysts were uniform in their positive takes. Berenberg said the COIN stock rally was “overdone” as some investors may have misinterpreted the ruling.
The positive outlooks mainly stem from the view that the XRP ruling provides some clarity around which crypto assets may be considered securities. This could potentially reduce regulatory risks for Coinbase which has faced its own SEC lawsuit.
The key takeaways are:
- The XRP ruling is seen as incrementally positive for Coinbase stock by some Wall Street analysts.
- The ruling is believed to provide some clarity around which crypto assets may be considered securities, potentially reducing regulatory risks for Coinbase.
- However, not all analysts viewed the COIN stock rally as justified given some nuances in the court’s decision.
The market will continue to monitor how the XRP ruling may influence regulatory approaches towards Coinbase and the broader crypto industry going forward.
This article is based on the original news published on CoinDesk.