The current regulatory environment surrounding cryptocurrency is undergoing significant scrutiny, especially with the efforts of the Coinbase exchange and the Securities and Exchange Commission (SEC). Coinciding with the anticipation of regulatory changes, Coinbase has observed a surge in its stock value, reflecting renewed investor confidence. On Thursday morning, shares of Coinbase rose nearly 4%, a reaction likely driven by the optimism surrounding upcoming regulations.
Faryar Shirzad, the chief policy officer at Coinbase, shared insights on the situation within Washington. He highlighted that around 20% of Americans currently hold some form of cryptocurrency, thereby creating a substantial incentive for Congress to establish supportive regulatory measures. Ongoing discussions in Congress encompass what Shirzad refers to as “market structure legislation,” which will define the rules governing the cryptocurrency market. This legislation is intended to clarify the SEC’s regulatory role and address the patchwork of state and federal regulations currently in effect, which could lead to regulatory gaps affecting operations like those seen at Coinbase.
In a related development, another initiative in New York is exploring the concept of universal basic income (UBI). This program proposes distributing cash payments to ease living expenses amidst growing automation and artificial intelligence applications. Participants in the program will receive approximately $12,000 over five months, and the funds, disbursed in USDC stablecoin, have already begun reaching Coinbase accounts. Administered by the nonprofit organization GiveDirectly, the initiative aims to support essential purchases such as housing and education.
Meanwhile, analysts on Wall Street have provided insights into Coinbase’s current standing. The stock has garnered a “Moderate Buy” consensus rating, informed by 14 buy recommendations, 13 holds, and two sell ratings issued over the past three months. Following an impressive 112.24% increase in share price over the past year, the average price target for Coinbase stands at $378.17 per share, indicating a potential upside of approximately 3.86%.
