ECNETNews reports that Coinbase anticipates the U.S. Securities and Exchange Commission (SEC) will dismiss its lawsuit from June 2023. This potential move is seen as a significant victory for Coinbase and the broader cryptocurrency sector.
While the final confirmation from the SEC is still awaited, Coinbase management is optimistic about a resolution as early as next week, according to industry analysts.
The SEC’s lawsuit accused Coinbase of offering unregistered crypto asset securities and operating unlawfully as an exchange, broker, and clearing company. A dismissal would eliminate a major obstacle for Coinbase’s stock and signal a shift towards a more favorable regulatory environment for cryptocurrencies.
Positive Outlook on Regulatory Challenges and Business Growth
Analysts believe that the SEC’s potential decision could alleviate significant regulatory burdens on Coinbase’s stock. Furthermore, they foresee a decrease in legal expenses and enhanced opportunities for business growth, particularly in staking services and new crypto listings.
Analysts highlighted expectations for an expansion of Coinbase’s staking operations, which have faced limitations due to the ongoing legal issues. Additionally, there could be an increase in new crypto listings on the platform, positively impacting both subscription services and transaction revenues.
On Friday morning, Coinbase’s stock opened approximately 1% higher following the announcement, although it quickly turned negative due to concerns surrounding a significant hack at another exchange. By the end of the day, Coinbase’s stock closed at $235.37, reflecting a decline of 8.2%.
