Coinbase Rally on the Back of XRP Court Ruling Is Overdone: Berenberg
The surge in the crypto exchange’s share price was driven largely by investors who saw the decision as a representing a rejection of the SEC’s argument in the lawsuit it filed against Coinbase in June, the report said.
Coinbase (COIN) shares Thursday after the U.S. District Court dismissed part of the Securities and Exchange Commission’s (SEC) case against Ripple Labs and , however, the extent of the rally may not be warranted, investment bank Berenberg said in a research report.
“The surge was driven in large part by investors who interpreted Judge Torres’ ruling as representing a rejection of the SEC’s argument in the lawsuit it filed against COIN on June 6 that many of the tokens bought and sold in secondary-market transactions on the company’s exchange are unregistered securities,” analysts led by Mark Palmer wrote.
A closer reading of the court’s ruling shows that the judge specifically did not reject that argument, the report said.
The SEC said it was on allegations of violating federal securities law. According to the regulator, Coinbase has operated as an unregistered broker, exchange and clearing agency simultaneously. It solicited customers, handled orders, allowed for bids and acted as an intermediary all at once, the SEC said.
The judge’s ruling “pertained solely to the primary market transactions through which Ripple sold XRP, while COIN is in the business of facilitating secondary-market transactions on its exchange,” the analysts wrote.
Berenberg says the judge’s decision that XRP on a standalone basis is not a security is “immaterial in the context of COIN since she also acknowledges that the sale of XRP can in fact represent a securities transaction.”
The German investment bank has a hold rating on Coinbase shares and a price target of $39. The stock closed yesterday at $107.
Edited by Sheldon Reback.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Asbury's Retro Strategy Increases Profits, Yet Shares Trail the S&P
- Asbury Automotive's nostalgia-driven strategy boosted Q3 2025 earnings, with $7.17 adjusted EPS surpassing estimates and $4.8B revenue up 13% YoY. - New vehicle sales ($2.53B, +17%) and finance/insurance profits ($187.1M, +9%) drove growth, though used vehicle sales lagged due to weak unit demand. - Despite strong fundamentals and value scores (A ratings), ABG stock underperformed the S&P 500 by 1.2%, reflecting mixed investor sentiment amid $3.6B debt concerns. - Analysts highlight Asbury's $28.03/share
Hyperliquid News Today: Community-Led Restaking Challenges Bear Market Expectations While HYPE Tokens Remain Resilient
- Hyperliquid unlocked $60.4M HYPE tokens on 2025/11/29 via its vesting schedule, with 40% restaked and 35% held post-unlock. - Core contributors demonstrated disciplined allocation, contrasting traditional VC-funded projects prone to token dumping. - Market impact was minimal (1.7% dip to $33.80), defying bearish forecasts and showing strong whale accumulation. - Analysts highlight buyback strength ($82M/month) and technical indicators suggesting potential $40+ breakout.
Ethereum News Today: Ethereum Faces a Pivotal Moment at $2,880—Will Institutions Keep Buying or Will Bears Take Over?
- Ethereum hovers near $3,000 amid conflicting technical signals and increased selling pressure from long-term holders offloading 973,600 ETH weekly. - Institutional confidence grows as BitMine accumulates 69,822 ETH ($200M) and ETFs add $96.67M, contrasting with bearish RSI divergence and $2,580 support risks. - Fed rate-cut odds above 80% for December fuel speculative buying, while $2,880 resistance remains pivotal for determining Ethereum's short-term direction. - Whale activity diverges: large whales a
Bitcoin News Today: Bitcoin’s ‘Panda Market’ Position: Holding Steady Rather Than Falling Apart
- Bitcoin's market consolidation sees ETF inflows/outflows diverge, with BlackRock's IBIT leading $42.8M inflows while Fidelity's FBTC faces $33. 3M outflows. - Altcoin ETFs show mixed trends: Solana records first outflows, XRP gains $644M cumulative inflows, and Dogecoin ETFs underperform expectations. - Price drops 30% to $87,000 amid $3.5B ETF outflows, driven by Fed tightening and leveraged position deleveraging, though whale accumulation and derivatives bets hint at potential rebound. - Market stabili
Trending news
MoreCrypto prices
More
