- Berenberg analysts expect a lawsuit against Coinbase
- The overall logic of the SEC claims indicates this
Berenberg analyst Mark Palmer shared his outlook after news of the SEC lawsuit against Binance. He expects the regulator not to stop. The next victim may be the largest U.S. cryptocurrency exchange Coinbase. As well as its native COIN token.
“We note that some of the details of the lawsuit the commission has filed against Binance echo those it previously filed against the crypto exchanges Bittrex and Kraken.Obviously, these cases together represent a preliminary version of the lawsuit likely to be filed against COIN.”
We recall that Binance is facing 13 charges in the lawsuit, including unregistered offers and sales of BNB and BUSD tokens. The regulator is also demanding to sort out the platform’s unregistered activities related to Simple Earn and BNB Vault products and its stacking program.
In March, Coinbase already received a Wells notice from the SEC. This means a warning of possible enforcement measures. In the document, the commission voiced claims about the listing of potential unregistered securities.
Mark Palmer noted that in the event of a court case, at least 37% of the cryptocurrency’s net revenue would be at risk.. But for now, it continues to hold the company’s target share price at $55.
In the meantime, Binance has responded to the SEC lawsuit.