COIN Stock Alert: What to Know as the Supreme Court Sides With Coinbase

Source: Sergei Elagin /

On an otherwise red day in the markets, there are some bright spots that investors are looking to for positivity. One such company that’s generating plenty of buzz today is Coinbase (NASDAQ:COIN). Shares of COIN stock are currently up 7%, driven by a Supreme Court ruling that went in the company’s favor.

Specifically, Coinbase won a ruling that essentially allows it to “channel customer and employee disputes into arbitration.” This is a win for both Coinbase and the industry, with proponents of arbitration citing lower costs for corporations and greater efficiency in resolving legal matters.

Coinbase’s case before the Supreme Court appears to be tied to two lawsuits that have hung over the company for some time. Arbitration would allow Coinbase to more quickly resolve the matters, avoiding a lengthy and ongoing court battle. One lawsuit is tied to a Dogecoin (DOGE-USD) sweepstakes promotion while the other is related to a user that inadvertently gave a scammer remote access to his account.

Let’s dive into what investors should make of this news.

COIN Stock Making Legal Headway

Notably, these two lawsuits are small potatoes for Coinbase in the grand scheme of things. The company is currently embroiled in an intense battle with the U.S. Securities and Exchange Commission (SEC) over whether specific digital assets listed on the company’s crypto exchange are securities or not.

However, the decision of the Supreme Court to side with Coinbase is material. This decision shows the willingness of the country’s highest court to take the side of the crypto sector. That could bode well for the company’s key case with the SEC.

Of course, extrapolating this win too far out could be dangerous. These two lawsuits are relatively miniscule in proportion to the myriad other issues with which Coinbase is dealing. The macro environment has been weak, regulatory headwinds are picking up and crypto is becoming a political hot potato. That’s not great for America’s largest crypto exchange, for sure.

Still, the news is certainly a step in the right direction for crypto investors betting that the legal issues embroiling this sector may be resolved in a positive fashion. We’ll just have to wait and see. But I expect more volatility on the horizon for Coinbase, COIN stock and others.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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