{"id":35480,"date":"2023-07-14T04:05:13","date_gmt":"2023-07-14T08:05:13","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/coinbases-spectacular-stock-surge-after-ripple-ruling-sparks-fierce-debate\/"},"modified":"2023-07-14T04:05:14","modified_gmt":"2023-07-14T08:05:14","slug":"coinbases-spectacular-stock-surge-after-ripple-ruling-sparks-fierce-debate","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=35480","title":{"rendered":"Coinbase\u2019s spectacular stock surge after Ripple ruling sparks fierce debate"},"content":{"rendered":"
\n

Coinbase Global Inc. shares roared more than 24% higher Thursday in the wake of a judge\u2019s ruling on a case involving cryptocurrency tokens, fueling debate on Wall Street over what the decision means for Coinbase\u2019s own regulatory headaches.\u00a0<\/p>\n

See more:<\/strong> Ripple token not a security in retail sales, judge rules in partial win for crypto<\/p>\n

\n

The cryptocurrency exchange is locked in a battle with the Securities and Exchange Commission, which has sued the company and charged that it has been running a unregistered national securities exchange. The agency has taken issue with various tokens sold by Coinbase
\n COIN,
\n +24.49%<\/bg-quote>,<\/span>
\n which the SEC views as securities.\u00a0<\/p>\n

So when a federal judge handed a partial victory Thursday to Ripple Labs\u2019 crypto token, saying that it wasn\u2019t a security when sold to members of the public on crypto exchanges, investors in Coinbase\u2019s stock cheered.\u00a0<\/p>\n

Read<\/strong>: Crypto bulls are thrilled by court ruling that XRP isn\u2019t always a security<\/p>\n

\u201cWith clarity from Ripple\u2019s case, there is increasing probability that resolution of Coinbase\u2019s case could come earlier than expected, in our view,\u201d Oppenheimer analyst Owen Lau wrote in a note to clients following the ruling, while sticking with his perform rating on the stock.\u00a0<\/p>\n

Additionally, he tuned in to a pre-motion conference between Coinbase and the SEC regarding their own case, and Lau thought \u201cthe judge asked good questions and showed a little skepticism toward the complaint,\u201d another factor that could have helped fuel the rally in Coinbase shares.\u00a0<\/p>\n

But Berenberg Capital Markets analyst Mark Palmer was more skeptical about Coinbase\u2019s ability to prevail, saying that Thursday\u2019s stock surge was \u201cnot warranted,\u201d especially in light of one footnote in the Ripple ruling.\u00a0<\/p>\n

Don\u2019t miss:<\/strong> XRP stages 80% rally as judge rules the crypto not a security in retail sales<\/p>\n

Coinbase\u2019s strong stock move likely \u201cwas driven in large part by investors who interpreted Judge Torres\u2019 ruling as representing a rejection of the SEC\u2019s 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\u2019s exchange are unregistered securities,\u201d Palmer said in a report, but \u201ca close reading of the ruling shows that the judge specifically did not reject that argument,\u201d in his view.\u00a0<\/p>\n

He was struck by a footnote in the decision that discussed how the ruling didn\u2019t address secondary-market sales of the token in question.\u00a0<\/p>\n

\u201cThe upshot is that [the judge\u2019s] 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,\u201d Palmer said, while maintaining a sell rating on Coinbase shares.\u00a0<\/p>\n

Benjamin Budish of Barclays, who had turned bearish on Coinbase\u2019s stock just before the ruling, offered a mixed take on the judgment.\u00a0<\/p>\n

\u201cOur read of today\u2019s ruling is that marketing and context matter\u00a0\u2014 in other words, the\u00a0way<\/em>\u00a0the token was sold\u00a0to investors impacts whether or not is a security,\u201d Budish wrote. \u201cNevertheless, we view the ruling as incrementally positive for Coinbase, given it sets additional legal precedence that in some cases a token may not be a security.\u201d\u00a0<\/p>\n

He added that \u201cit may be possible the\u00a0judge in Coinbase\u2019s\u00a0lawsuit could view the secondary-market trading of tokens to not\u00a0be\u00a0securities transactions\u00a0based on this precedence, as there is no investment in a common enterprise.\u201d\u00a0<\/p>\n

Factoring in Thursday\u2019s rally, shares of Coinbase are up just over 200% so far this year, while the S&P 500
\n SPX,
\n +0.85%<\/bg-quote>
\n has gained 17%.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Coinbase Global Inc. shares roared more than 24% higher Thursday in the wake of a judge\u2019s ruling on a case involving cryptocurrency tokens, fueling debate on Wall Street over what the decision means for Coinbase\u2019s own regulatory headaches.\u00a0 See more: Ripple token not a security in retail sales, judge rules in partial win for crypto […]<\/p>\n","protected":false},"author":1,"featured_media":4523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-35480","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nCoinbase\u2019s spectacular stock surge after Ripple ruling sparks fierce debate | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Coinbase Global Inc. shares roared more than 24% higher Thursday in the wake of a judge\u2019s ruling on 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