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 made a dual distinction in his decision regarding Ripple, ruling that XRP is not a security in some sales situations and a security in others.
Berenberg analysts are also concerned that some of Coinbase's offerings have been 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 taken action against Coinbase decide that Coinbase Earn products are facilitating securities offerings, that could 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.