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CoinDesk 2025-03-18 12:42:11

Coinbase Initiated at Outperform at Bernstein; Best-Positioned to Benefit From Regulatory Tailwinds

The crypto industry is expected to join the financial mainstream in the U.S. as the regulatory environment improves, and Coinbase (COIN) is well positioned to benefit from these tailwinds, broker Bernstein said in a report Monday. Bernstein initiated coverage of the crypto exchange with an outperform rating and a $310 price target. The shares dropped 2% to $185.20 in early trading. Regulatory clarity will result in more competition for Coinbase from fintech companies, brokers and banks, the report said. Still, a "strong bull market and rising U.S. onshore dominance" is expected to more than offset market share and pricing pressures, analysts led by Gautam Chhugani wrote. An improving regulatory backdrop under Donald Trump's new administration is viewed as a huge tailwind for digital assets, and the President has promised to make the U.S. the " crypto capital of the world ." The Securities and Exchange Commission (SEC) has formed a new crypto task force led by Commissioner Hester Peirce to draft new regulation for the industry. Coinbase has done well to diversify beyond trading, the report said, and the exchange now has a strong presence in U.S. dollar stablecoins and crypto yield services, such as staking. Bernstein said it expects Coinbase to grow non-trading revenues by around a 31% compound annual growth rate (CAGR) between 2024-2026. This provides a "strong balance to cyclicality of trading revenues," the report added. Coinbase recently secured FIU registration, paving the way for a return to the Indian market, the company said in a blog post earlier this month. Read more: Coinbase Plans India Comeback After Securing Regulatory Registration With FIU

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