On November 27, Coinbase [COIN] shares experienced a meteoric rise, soaring to an 18-month pinnacle at $119.77, according to data from TradingView. The last instance of COIN reaching such heights was recorded on May 5, 2022, when it touched $114.25. This surge represents an impressive year-to-date increase of approximately 256.5%. However, it is worth noting that despite this significant surge, the current value is still down by 65% from its all-time high of nearly $343 on November 12, 2021.
The surge in COIN shares comes at a pivotal moment, coinciding with the resignation of Binance’s former leader, Changpeng Zhao. Zhao recently pleaded guilty to charges related to money laundering and sanctions violations in the United States, marking a significant blow to one of the most influential figures in the cryptocurrency space.
With Binance under scrutiny, the focus has now shifted to Coinbase, the prominent digital asset platform. It is currently entangled in a legal battle with the U.S. Securities and Exchange Commission [SEC], which accuses the platform of failing to register as a national securities exchange, broker, and clearing agency since 2019. The SEC has also alleged that 12 of the 240 tokens traded on Coinbase’s spot exchange are considered “securities.”
Coinbase Remains Unfazed By SEC’s Actions
In response to the SEC’s allegations, Coinbase has sought to dismiss the lawsuit, challenging the regulatory authority of the SEC in the crypto space. Founder and CEO Brian Armstrong believes that Binance’s recent settlement with the Department of Justice [DoJ] provides an opportunity for the industry to move past a series of scandals and challenges. In an interview with CNBC, Armstrong stated that regulatory clarity would attract more investment, especially from institutional investors.
Despite the legal challenges and regulatory scrutiny, Coinbase remains active and invested in its home market. Armstrong refuted claims that the SEC’s actions have compelled Coinbase to shift its operations offshore, emphasizing the company’s ongoing commitment to its domestic market. He expressed confidence in Coinbase’s ability to contest the SEC lawsuit, signaling a positive outlook for the platform amidst the legal complexities it currently faces.