Coinbase Stock Continues to Soar Following Binance’s Settlement with DOJ
- Coinbase recently saw the value of its shares reach its highest levels in 18 months.
- Brian Armstrong believes the situation at Binance paves the way for exchanges complying with the rules to grow.
Crypto exchange Coinbase is enjoying the spotlight following Binance’s settlement with the US Department of Justice (DOJ) last week. The platform’s stock reached its highest levels in 18 months on Monday, and companies like Cathie Wood’s ARK Invest are cashing in on this growth.
Ark reportedly sold 43,956 COIN ($5.3 million). At the time of this purchase, COIN traded around $119.7 per share. Interestingly, reports show that Coinbase’s stock has seen 168% growth in the last year and an impressive 220% growth since January 2023.
Coinbase is the biggest crypto exchange in the US, and several crypto enthusiasts believe that Binance’s settlement with the DOJ could be one of the factors pushing COIN’s value. While that might appear speculative, a more likely reason would be increased institutional interest in Coinbase.
Major Wall Street firms like BlackRock have named the exchange as their custodian or surveillance-sharing partner for their Bitcoin ETF applications. Coinbase will no doubt be looking to expand its influence on the crypto market following Binance’s settlement with the DOJ.
Interestingly, Brian Armstrong, Coinbase’s CEO, believes the DOJ’s settlement with Binance closes the door for bad actors in the crypto industry. While speaking with CNBC on Monday, Armstrong remarked that “there certainly have been a few bad actors in crypto, and I think we’ve had a moment recently with the enforcement action against Binance that’s allowing us to turn the page on that and close that chapter of crypto’s history.”
Armstrong added that the situation with Binance and FTX paves the way for US-based companies that have complied with the rules to grow. However, Coinbase is not without its share of legal troubles.
US regulators accused the exchange of operating as an unregistered exchange and clearing agency. However, Coinbase has dismissed these claims and continued to push for more crypto-friendly policies.