Ripple’s Ruling A Win For Coinbase: JPMorgan
The recent ruling on Ripple’s XRP token benefits Coinbase as it narrows the crypto exchange operator’s downside risk, according to JPMorgan.
JPMorgan equity analysts, led by Kenneth Worthington, believe Coinbase’s recent lawsuit by the SEC is a win for the company. They see improved confidence and regulatory clarity due to the market-leading position and respected reputation. However, if the Ripple case stands, it would be more challenging for the SEC to demonstrate the 13 tokens are securities and Coinbase is an unregistered securities exchange, potentially exempting it from future licensing and regulatory requirements.
Analysts believe the Ripple ruling narrows downside risk for Coinbase but does not offer significant incremental upside. Coinbase’s staking and wallet products are also involved in the SEC lawsuit, suggesting it’s not completely out of the woods. The SEC can appeal the decision, further complicating the implications. JPMorgan has a neutral rating on Coinbase.
(With inputs from Shikha Singh)
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