A potential Republican sweep in the upcoming U.S. election could have a significant impact on Coinbase and the broader crypto market, according to a recent report by Citi. The report stated that if Republicans were to control both chambers of Congress, it would be the most bullish outcome for Coinbase and crypto markets.
Citi also noted that a victory for Harris and a divided Congress would likely result in more uncertainty for the digital assets space. The bank emphasized that a Republican-controlled Senate would be crucial for passing bills related to digital asset reform, which could potentially benefit Coinbase and the crypto market.
Analysts at Citi pointed out that the pace of digital asset reform would likely be faster with both chambers of Congress aligned. However, even if there were a split between the House and Senate, with a GOP victory in the Senate and a Democrat win in the House, it would still be a positive outcome for Coinbase and the crypto markets.
The bank highlighted that the existing House Financial Services Sub Committee is predominantly made up of Democrats who are not in favor of crypto. However, they believe that a combined pro-crypto contingent of Democrats and Republicans could outweigh any opposition.
In the event of a Harris victory and a Republican Congress, there would be uncertainty surrounding crypto markets as Harris has not outlined her crypto policy goals. Additionally, a Democrat administration would likely maintain current agency heads to avoid potential challenges with Senate confirmation.
Citi maintained its buy rating on Coinbase shares but reduced its price target from $345 to $275. Despite this price adjustment, the stock saw a 2.7% increase in early trading on Friday, reaching $209.65.
It is important to note that the U.S. election is scheduled for November 5, with results expected to be announced on November 8. The outcome of the election could have a significant impact on the future of digital assets and the crypto market.
In conclusion, the potential outcomes of the U.S. election could shape the regulatory environment for digital assets and impact the performance of companies like Coinbase. Investors will be closely watching the results to gauge the future direction of the crypto market.