In a recent research report, Barclays, the renowned British banking giant, expressed optimism regarding the U.S. Southern District Court ruling favoring payments network Ripple. The decision has been deemed “incrementally positive” for Coinbase, the leading cryptocurrency exchange, according to Barclays’ analysts.
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The bank’s experts stated that the ruling’s interpretation, where specific tokens may not be considered securities, could be advantageous for Coinbase. Furthermore, it could provide greater clarity for future token issuances. Despite maintaining an underweight rating for Coinbase, with a $70 price target, Barclays acknowledges the potential benefits of the ruling.
Barclays had previously downgraded Coinbase’s stock rating to underweight from equal weight, citing a lack of positive catalysts for the exchange in the immediate future. However, the recent court ruling has prompted the bank to revise its outlook.
Barclays is not alone in its positive sentiment towards Coinbase. J.P. Morgan, a prominent Wall Street institution, released a note affirming Coinbase’s advantageous position in light of improved confidence and regulatory clarity. J.P. Morgan’s analysts, who have assigned a neutral rating to Coinbase, emphasized the exchange’s market-leading position and respected reputation within the industry.
Another analyst supporting Coinbase is John Todaro from Needham. He maintains a buy rating and a price target of $120 for the crypto exchange, asserting that the ruling should alleviate some regulatory pressures on Coinbase’s stock. These positive assessments from Wall Street firms reflect the consensus that Coinbase stands to benefit from the newfound clarity in the regulatory landscape.
However, not all analysts share the same enthusiasm for Coinbase following the XRP ruling. Berenberg, an investment bank, expressed a more cautious stance, suggesting that the recent surge in Coinbase’s share price might have been an overreaction by some investors who partially misinterpreted the ruling.
The U.S. judge’s ruling on Thursday determined that Ripple’s XRP token should not be considered a security if sold on an exchange or through programmatic sales. Since the verdict became public on July 13, Coinbase’s shares have risen by nearly 30%, indicating the market’s positive response.
With Barclays joining other major Wall Street institutions in recognizing the potential benefits for Coinbase resulting from the XRP ruling, market participants eagerly anticipate the effects of this newfound regulatory clarity. While the overall sentiment towards Coinbase remains mixed, the current developments in the legal landscape have undoubtedly injected renewed optimism into the crypto exchange’s prospects.
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