Coinbase (COIN) says the U.S. Securities and Exchange commission plans to abandon its enforcement case against the crypto firm, adding it’s a “huge day” for crypto enthusiasts.
The SEC’s change of heart suggests President Donald Trump’s new administration will make good on its promises of regulatory clarity and pro-crypto policies in the years ahead, as argued by Coinbase CEO Brian Armstrong in an interview on Friday.
Armstrong hopes the regulator will “dismiss all the bogus cases” in 2025, which may create a “domino effect for the rest of the industry.”
Despite the positive update, Coinbase stock is down 4.5% at the time of writing on Feb. 21. Shares are up about 1.4% in the year to date.
How High Could Coinbase Stock Fly in 2025?
Coinbase stock’s muted response to good SEC news may be a buying opportunity considering Oppenheimer raised its price target on the company’s shares recently to $388.
Analyst Owen Lau is bullish on COIN stock as it continues to win share in crypto spot trading. Coinbase now owns 67% of that market versus 64% only in November, as per his report this week.
Lau expects the company’s push to diversify its business model to help unlock further upside in its share price as well.
Investors should note that Oppenheimer is not alone in remaining positive on Coinbase. The mean target on its stock currently sits at about $325, indicating potential upside of nearly 30% from current levels.
COIN’s Revenue More Than Doubled in Q4
Oppenheimer expects Coinbase to join the benchmark S&P 500 Index ($SPX) this year. The strength of its financials was among other reasons analyst Owen Lau cited for the bullish view on COIN.
Coinbase saw its revenue increase by 130% on a year-over-year basis to $2.3 billion in its Q4 as Bitcoin (BTCUSD) rallied past the closely watched $100,000 mark following Trump’s presidential election victory.
More importantly, analysts believe that momentum will extend further as BTC continues to hit new milestones in 2025. They estimate a 30% annualized growth in COIN’s earnings in its current quarter, followed by another 69% year-over-year increase in Q2.
