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Tuesday, April 16, 2024

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Coinbase Looks Very Promising Despite Regulatory Scrutiny!

Many experts see a new crypto bull run on the horizon. Of course, the listed U.S. crypto exchange Coinbase shares would be worth considering. During the current week, there were reports of Coinbase CEO Brian Armstrong meeting with members of the U.S. Congress; the specifics of the meeting have been kept largely confidential. According to Bloomberg, the discussions with congressional members centered around promoting progressive and innovative policies, with a particular emphasis on the significance of new technologies in relation to national security.

Regulatory Scrutiny

Speculations have arisen among some observers, suggesting that Coinbase may have addressed the U.S. Securities and Exchange Commission’s (SEC) allegations regarding the exchange’s trading of unregistered securities. Coinbase as well as other crypto exchanges, such as Binance, have been sued by the SEC. They are accused that some tokens and coins listed on the exchanges would qualify as securities. However, since these would not be registered with the SEC, the crypto exchanges would violate securities laws. This is a massive uncertainty for Coinbase et al. Nonetheless, no official information has been disclosed regarding this matter, PayNews42 reports.

The Coinbase Stock Performance

Despite a reasonably stable performance of Coinbase‘s stock from a technical analysis standpoint, partly due to positive developments in Bitcoin’s price, there was a noticeable setback on Friday morning, resulting in losses of approximately five percent.

Numerous questions continue to linger, and the potential implications of discussions with politicians represent just a fraction of the overall puzzle. Ongoing legal disputes with the SEC are expected to have a lasting impact on the Coinbase stock’s performance, leading many investors to adopt a cautious approach and opt to secure profits when possible.

The prevailing sentiment among investors is not universally optimistic, and there is concern that this cautious stance may jeopardize the rapid recovery observed in recent weeks. The situation demands careful monitoring as any further updates, official statements, or regulatory developments related to Coinbase could significantly influence market sentiment surrounding the stock.

However, for investors who believe in the next crypto bull run, now might be the right time to get into Coinbase.

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