Coinbase, the largest U.S. cryptocurrency exchange, received bullish support from Barclays on Monday following a court ruling in favor of Ripple, one of the listed tokens, in its lawsuit with the SEC.
The U.S. Southern District Court ruled last week that XRP, the native token of the Ripple payment network, is not a security when sold on exchanges, but only when Ripple issues it to institutional investors.
The decision is a partial victory 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 is “incrementally positive” for Coinbase as it could provide greater clarity and confidence in the crypto industry and future token products. They retained their Underweight rating and $70 price target on COIN shares, citing some short-term catalysts for the stock.
Other Wall Street firms also expressed optimism about Coinbase’s prospects following the court ruling, with JPMorgan Chase saying that Coinbase is “best positioned to benefit from an improved regulatory environment” given its leading market share and reputation.
