{"id":21419,"date":"2023-06-06T13:37:08","date_gmt":"2023-06-06T13:37:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-lawsuit-against-binance-may-signal-impending-action-for-coinbase-analyst-suggests\/"},"modified":"2023-06-06T13:37:08","modified_gmt":"2023-06-06T13:37:08","slug":"sec-lawsuit-against-binance-may-signal-impending-action-for-coinbase-analyst-suggests","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-lawsuit-against-binance-may-signal-impending-action-for-coinbase-analyst-suggests\/","title":{"rendered":"SEC Lawsuit Against Binance May Signal Impending Action for Coinbase, Analyst Suggests"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
\n<\/p>\n

\n

The U.S. Securities and Exchange Commission\u2019s (SEC) lawsuit against Binance has come to the notice of Berenberg analyst Mark Palmer, who believes it may be a sign of things to come for Coinbase, a rival cryptocurrency exchange. Palmer\u2019s note draws attention to the parallels between the SEC\u2019s moves against Binance, Bittrex, and Kraken and muses about what might happen to Coinbase. The implications for Coinbase are examined in this article along with Palmer\u2019s observations.<\/p>\n

Palmer said, \u201cWe observe that several of the details of the lawsuit that the commission filed against Binance echo those it previously filed against crypto exchanges Bittrex and Kraken, and we believe these cases in aggregate represent a preview of the action that is likely to be filed against COIN.\u201d<\/em><\/p>\n

\n
\n
\n
\n
\n
100% up to 5BTC + 100 Free Spins<\/strong>!<\/strong> <\/p>\n

New players only. Welcome Bonus – 100% bonus on your first deposit up to 5BTC <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Parallels Drawn and Implications for Coinbase<\/h3>\n

Palmer points out that the charges made by the SEC against Binance, its CEO Changpeng \u201cCZ\u201d Zhao, and Binance.US concern the distribution of unregistered securities to the general public via the BNB token and the BUSD stablecoin related to Binance. Additionally, the lawsuit asserts that Binance\u2019s staking service broke securities laws. Palmer contends that these actions collectively provide a preview of the potential future legal action that may be brought against Coinbase by drawing comparisons to prior instances.<\/p>\n

Market Response and Revenue Risk<\/h3>\n

The cryptocurrency market saw sharp falls on Monday as a result of the SEC\u2019s statement, with Coinbase\u2019s stock ending the day down roughly 9.1% at $58.71. This most recent development comes after the SEC warned Coinbase in March that it might face enforcement action for listing unregistered securities. Palmer noted, \u201cWe estimate that at least 37% of COIN\u2019s net revenue would be at risk if the SEC were to target the company\u2019s crypto token trading and staking operations.\u201d\u00a0<\/em><\/p>\n

Analyst Rating and Investor Outlook<\/h3>\n

Palmer\u00a0<\/span><\/span>continues\u00a0<\/span><\/span>to\u00a0<\/span>rate\u00a0<\/span><\/span>Coinbase<\/strong><\/a>\u00a0<\/span><\/span>as\u00a0<\/span>a\u00a0<\/span><\/span>hold\u00a0<\/span><\/span>and\u00a0<\/span><\/span>sets\u00a0<\/span><\/span>a\u00a0<\/span>price\u00a0<\/span><\/span>objective\u00a0<\/span>of\u00a0<\/span><\/span>$55\u00a0<\/span><\/span>for\u00a0<\/span><\/span>the\u00a0<\/span>company,\u00a0<\/span><\/span>highlighting\u00a0<\/span><\/span>the\u00a0<\/span>necessity\u00a0<\/span><\/span>for\u00a0<\/span><\/span>investors\u00a0<\/span><\/span>to\u00a0<\/span>take\u00a0<\/span><\/span>into\u00a0<\/span>account\u00a0<\/span><\/span>the\u00a0<\/span>company\u2019s\u00a0<\/span>flexibility\u00a0<\/span><\/span>in\u00a0<\/span><\/span>changing\u00a0<\/span><\/span>its\u00a0<\/span>business\u00a0<\/span>strategy\u00a0<\/span><\/span>and\u00a0<\/span><\/span>regional\u00a0<\/span><\/span>focus\u00a0<\/span><\/span>in\u00a0<\/span><\/span>the\u00a0<\/span>case\u00a0<\/span><\/span>of\u00a0<\/span><\/span>SEC\u00a0<\/span><\/span>enforcement\u00a0<\/span>action.<\/span><\/span><\/span> <\/span><\/span><\/span>Coinbase\u00a0<\/span><\/span>currently\u00a0<\/span>has\u00a0<\/span><\/span>11\u00a0<\/span><\/span>buy\u00a0<\/span><\/span>ratings,\u00a0<\/span><\/span>7\u00a0<\/span><\/span>holds,\u00a0<\/span><\/span>and\u00a0<\/span><\/span>6\u00a0<\/span><\/span>sell\u00a0<\/span><\/span>ratings,\u00a0<\/span><\/span>according\u00a0<\/span>to\u00a0<\/span><\/span>FactSet\u00a0<\/span><\/span>data,\u00a0<\/span><\/span>suggesting\u00a0<\/span><\/span>conflicting\u00a0<\/span>opinions\u00a0<\/span><\/span>among\u00a0<\/span><\/span>analysts.<\/span><\/span><\/span> <\/span><\/span><\/span><\/p>\n

Concerns have been expressed concerning possible repercussions for Coinbase as a result of the SEC\u2019s action against Binance. Mark Palmer, a Berenberg analyst, draws attention to the similarities between the lawsuits brought against different cryptocurrency exchanges and suggests that they work as a foreshadowing of potential future legal action against Coinbase. Investors and market participants must evaluate the potential ramifications and Coinbase\u2019s capacity to overcome regulatory obstacles while the industry closely observes these developments. The company must then adjust its operations as necessary.<\/p>\n<\/p><\/div>\n

Source link <\/a>
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"

(Originally posted on : Crypto News – iGaming.org ) The U.S. Securities and Exchange Commission\u2019s (SEC) lawsuit against Binance has come to the notice of Berenberg analyst Mark Palmer, who believes it may be a sign of things to come for Coinbase, a rival cryptocurrency exchange. Palmer\u2019s note draws attention to the parallels between the […]<\/p>\n","protected":false},"author":34,"featured_media":21420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/21419"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=21419"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/21419\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/21420"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=21419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=21419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=21419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}