Coinbase Share Rallies Amid SEC Threats
Coinbase Global Inc investors are not facing regulatory threats at present. Shares have rallied nearly 80% since a 2023 low on June 6. The US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange on charges of securities law violations.
The SEC accuses Coinbase of unlawfully facilitating the buying and selling of crypto asset securities since at least 2019. The issue has been ongoing since 2020.
Cryptocurrency trading volumes have declined this year, impacting Coinbase’s transaction fees. Bitcoin’s spot price has risen over 70%, while ether (ETH) has risen over 45%. Coinbase deals in multiple cryptoassets, but bitcoin and ether account for over half of all trades, according to 2022 financials.
Bullish investor sentiment stems from a potential tie-up with BlackRock, the world’s largest asset manager, aiming to get its bitcoin exchange-traded fund approved by the SEC. Coinbase may play a crucial role in this process, as BlackRock’s first application faced challenges in unregulated crypto markets.
(With inputs from Shikha Singh)
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