Berenberg analyst Mark Palmer said the SEC’s stance on Binance could be a trailer for Coinbase.
The crypto industry has been shaken by yet another sensational event. A new one has been added to the regulatory and stock market conflict, which has become the critical agenda of the last period. The SEC sued Binance.
While the SEC’s lawsuit against Binance has been heavily debated for two days, a surprising Coinbase prediction came from Berenberg analyst Mark Palmer. Palmer thinks Coinbase is on the ball too.
Berenberg Analyst Addresses Coinbase’s Situation
Berenberg analyst Mark Palmer stated that the tension between the SEC and Binance could also spread to Coinbase, which could result in Coinbase losing 37 percent of its net income.
Palmer stated that if the SEC targets Coinbase’s crypto trading and staking services, tough days await the company. According to Palmer, Coinbase’s net revenues will be put at risk in a possible regulatory conflict.
Coinbase, a publicly traded crypto exchange in the US, came face to face with the SEC last month. Coinbase CEO Brian Armstrong has often voiced his complaints about the oppressive crypto regime in the US. Although this conflict leaves its place to calm, the Binance event may be a move that breaks the ropes.
Palmer evaluated the possible situations of Coinbase in these processes as follows;
We believe investors should focus on whether COIN will have the ability to successfully rotate its business model and geographic focus if it is forced to restrict or cease a large portion of its business activities in the US as a result of an SEC enforcement action.
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