Coinbase, a prominent cryptocurrency exchange, has seen its shares reach an 18-month high, largely influenced by recent legal developments involving its competitor, Binance, and Binance’s former CEO, Changpeng “CZ” Zhao.
On November 27, Coinbase’s stock closed at $119.77, marking its highest point since May 5, 2022, when it closed at $114.25. This information, sourced from TradingView, indicates a significant surge in the company’s stock value, although there has been little movement in after-hours trading.
Year-to-date, Coinbase shares have increased by approximately 256.5%. However, they are still down by 65% from their all-time high of nearly $343, recorded on November 12, 2021. This recent spike in share value coincides with the legal issues faced by Binance and CZ, who recently pleaded guilty to charges of money laundering, violating U.S. sanctions, and operating an unlicensed money-transmitting business.
As part of a settlement with the U.S. government, Zhao and Binance agreed to pay $4.3 billion. This settlement also included Zhao stepping down as CEO and the imposition of compliance monitors from the U.S. Justice Department and Treasury Department on Binance for up to five years.
In the past year, Coinbase has also been involved in significant developments, particularly concerning U.S. spot Bitcoin and Ether exchange-traded funds (ETFs), which are still awaiting approval. According to Bloomberg ETF analyst James Seyffart, Coinbase is the custodian for 13 of the 19 spot crypto ETFs currently pending with the U.S. Securities and Exchange Commission (SEC).
Despite these positive developments, Coinbase is currently facing a lawsuit from the SEC. The SEC alleges that Coinbase did not register with the regulator and listed several tokens that are in violation of U.S. securities laws. Coinbase has attempted to dismiss this lawsuit, challenging the SEC’s authority over cryptocurrency regulation.
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