JPMorgan Chase lowered its share price forecast of Coinbase to $52 due to regulatory risk
It is reported that a report released by JPMorgan Chase on Friday showed that JPMorgan Chase analysts lowered the price expectation of Coinbase (COIN) stock at the end of the year from $60 to $52. JPMorgan Chase pointed out that the company’s digit-centric businesses (including pledge, USDC stable currency and custody) faced continuous regulatory risks, which was the main reason for the change in the outlook. The analyst wrote: “Although we continue to agree with the consensus that deliberate rules and regulations are necessary to improve people’s confidence in the encryption ecosystem and promote its growth, we believe that regulation through law enforcement is a risk for digital-centric enterprises. The SEC’s recent actions put different encryption businesses at risk, including pledge, USDC stable currency and custody.”
Interpretation of this information:
According to a report released by JPMorgan Chase on Friday, the bank’s analysts have lowered their year-end price expectation for Coinbase’s stock from $60 to $52. The report cited continuous regulatory risks faced by the company’s digit-centric businesses, including pledge, USDC stable currency, and custody, as the main reason for the change in outlook.
JPMorgan Chase’s analyst expressed concern about regulation through law enforcement, stating that it poses a risk for digital-centric enterprises. The report mentions recent actions taken by the SEC, which put different encryption businesses, including pledge, USDC stable currency, and custody at risk.
This report highlights the ongoing concerns around cryptocurrency regulation and the associated risks that it poses for businesses operating in this space. While regulations are necessary to improve people’s confidence in the encryption ecosystem, strict enforcement may limit the growth potential of digital-centric enterprises.
Overall, the report suggests that Coinbase may face significant challenges in the coming months due to increasing regulatory pressure on the cryptocurrency industry. Although the company has stated that it is committed to regulatory compliance, it remains to be seen how it will navigate the evolving regulatory landscape.
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