Coinbase, the largest US cryptocurrency exchange, received bullish support from Barclays on Monday following a court ruling in favor of one of the listed tokens, Ripple, in a lawsuit with the SEC.
The US Southern District Court ruled last week that XRP, the native token of Ripple's payments network, is not a security when sold on exchanges, but is only a security when issued by Ripple to institutional investors.
The decision was a partial win for Ripple, which was sued by the SEC for allegedly selling $1.3 billion worth of unregistered securities.
Analysts at Barclays, one of the UK's largest banks, said the decision was “gradually positive” for Coinbase as it could provide greater clarity and confidence for the crypto industry and future token offerings. They have retained their low weight rating and $70 price target for COIN stock, citing a few short-term catalysts for the stock.
Other Wall Street firms have also expressed optimism about Coinbase's prospects following the court ruling. JP Morgan said Coinbase was “in the best position to benefit” from the improved regulatory environment, given its leading market share and reputation.
*Not investment advice.