Germany-based international investment bank Berenberg has released a new report for Coinbase after the Ripple lawsuit.
The report reminded that Coinbase faces a number of regulatory risks and challenges.
The judge recently Ripple by making a double distinction in its decision regarding of XRP he had ruled that in some sales situations they were not securities and in others they were securities.
Berenberg analysts too Coinbase’s is concerned that some of the products it offers are found to violate securities laws.
“Coinbase Earn, where Coinbase offers staking rewards to individual users, appears to be vulnerable to identification as a security.”
If any of the 10 states that have initiated action against Coinbase decide that Coinbase Earn products facilitate securities offerings, this may strengthen the SEC’s arguments.”
The famous bank kept its recommendation of “HOLD” Coinbase stock with a price target of $39 in its report. Coinbase shares are trading at $105 as of our news.
It was also noteworthy that Ark Invest, the investment company led by Cathie Wood, sold its shares of Coinbase despite the victory in the Ripple case.
Coinbase stocks are trending in correlation with Bitcoin. A negative decision on Coinbase could cause a short-term fluctuation in Bitcoin price. However, a decision is not expected in the Coinbase case any time soon.
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