COIN jumps 27% as Chamber of Commerce backs Coinbase against SEC

Key Takeaways:

• COIN jumped 27%, but the risk of paring recent gains remains.
• The Chamber of Commerce backed Coinbase in its call for regulation in the crypto sphere.
• The association filed an amicus brief, demanding action from the SEC.

YEREVAN (CoinChapter.com) – Coinbase stock COIN bottomed out at $47.5 per share on May 4, gaining over 27% in the previous week. As a result, the stock price per share reached $60.3 in presale on May 12 despite Bitcoin’s 10% drop in the same period.

The declining trading volumes on the price chart above suggest a possible drop ahead due to investors’ dwindling interest. Moreover, the stock value failed to hold significant support at $61. Thus, the most likely target for COIN would stand at $58.

If the mentioned assistance line proves irrelevant, the stock price could drop to $52.

In light of the possible decline, there was no consensus among 23 Wall Street analysts covering COIN stock. Out of 23 analysts, five recommended COIN as a Strong Buy, four saw it as a Buy, eight recommended to hold, four recommended COIN as a Sell, and two said COIN was a Strong Sell.

Chamber of Commerce backs Coinbase.

Meanwhile, the developments in the Securities and Exchange Commission (SEC) vs. Coinbase case took a positive turn for the exchange. The US Chamber of Commerce, a heavy-weight organization in the business world, called the SEC out for inadequacy and a “chaotic” approach to regulation.

In detail, the SEC sent a “Wells Notice” to Coinbase in late March, the agency’s way of informing a company it is under recommendation for enforcement action after possible violations of securities laws. After a cursory investigation, the regulator took issue with the staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.

However, the exchange cooperated with the SEC before launching the services and even filed a rulemaking petition in July 2022 to get clear regulations in the crypto sector.

Notably, the SEC failed to respond to the petition, prompting the Coinbase CLO to file a narrow action in Circuit Court to compel the SEC to respond “yes or no” to the fundamentally important regulations of the crypto space.

The business community calls for clarification.

Fast forward to the Chamber of Commerce, it filed an amicus brief in Coinbase’s support. In short, an amicus brief is a legal document provided to a court of law containing advice or information from a person or organization that is not directly involved in the case.

The business association further asserted that SEC’s delay in delivering the necessary regulations is causing “great economic harm.”

As it stands today, nobody knows for certain which digital assets, if any, are“securities” under federal law. That is no small question. It has immense implications for every person involved in the $1 trillion digital-asset economy. But remarkably, the [SEC] —despite proclaiming itself the primary regulator of digital
assets—has refused to resolve this threshold question.

Chamber of Commerce clarified its stance.

Also read: Why is SEC Suing Coinbase (COIN) But Not Binance?

Notably, the business organization filed the mentioned brief on May 9, further spurring COIN’s bullish action. However, the direct correlation between the lawsuit developments and the Coinbase stock price is not established.