Ripple CEO Raises Clarity Act Passage Odds to 90% After White House Meeting
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy COIN?
Source: Benzinga
- White House Meeting Progress: Ripple CEO Brad Garlinghouse raised the odds of the Clarity Act passing to 90% following a White House meeting with crypto and banking leaders, indicating meaningful progress in discussions that could lead to passage by the end of April.
- Stablecoin Yield Dispute: Banks are advocating for a broad ban on stablecoin yields, arguing that crypto firms should not distribute interest to users, while crypto firms counter that such a ban stifles innovation and gives traditional banks an unfair advantage, highlighting ongoing negotiations.
- Compromise Proposal: The Digital Chamber proposed a compromise to exempt stablecoin yields when users engage in activities like liquidity provision and staking, but it remains unclear whether banking representatives will accept this proposal, with a deadline for compromise set by the White House at the end of February.
- Market Reaction Volatility: On Kalshi, the odds of the Clarity Act becoming law before June spiked from 39% to 85% on Thursday morning following statements from industry leaders, but quickly slid back to 46%, indicating that traders remain uncertain despite the optimistic rhetoric from the industry.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 165.940
Low
230.00
Averages
361.63
High
440.00
Current: 165.940
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the cryptoeconomy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. Its platform helps people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and global transfers. It offers products and services to various customer groups: individuals, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime Trading, markets, base protocol and Coinbase wallet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- User Demand Driven: Since its launch in January, Coinbase's prediction markets have proven popular, particularly in sports, politics, and crypto, indicating a strong user demand for diversified investment tools and further solidifying Coinbase's strategic positioning as the 'everything exchange'.
- Commitment to Market Transparency: Coinbase ensures transparency in its prediction markets by prohibiting employees and executives from betting on these markets, reflecting the company's commitment to customer interests and aiming to build user trust while enhancing the platform's long-term appeal.
- Industry Experience Accumulation: Toni Gemayel, head of Coinbase's prediction markets, brings extensive experience from the prediction market sector, having founded The Clearing Company, which was acquired by Coinbase, indicating the company's strong background and potential for future growth in this emerging field.
See More
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- Market Recovery: The S&P 500 index rose by 0.58%, reaching a one-week high, primarily driven by the Supreme Court's ruling against Trump's global tariffs, which is expected to boost economic growth and improve market sentiment.
- Weak Economic Data: The US Q4 GDP grew at an annualized rate of only 1.4%, significantly below the expected 2.8%, indicating fragility in the economic recovery and potentially leading the Fed to adopt a more cautious approach in future rate decisions.
- Rising Inflation Pressures: The December core PCE price index increased by 3.0% year-over-year, surpassing expectations of 2.9%, which may impact the Fed's monetary policy and limit its ability to cut rates, thereby affecting market liquidity.
- Positive Earnings Outlook: Over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, providing support for the market and demonstrating corporate resilience amid economic uncertainties.
See More
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- New Legislative Approach: The White House is now directly driving stablecoin legislation talks, moving away from an industry-led format and introducing draft text aimed at bridging the gap between crypto firms and banks, indicating a significant governmental focus on crypto regulation.
- Adjusted Meeting Participants: The meeting was smaller and included representatives from Coinbase, Ripple, and Andreessen Horowitz, along with trade groups like the Blockchain Association and the Crypto Council for Innovation, but no individual bank representatives attended, reflecting a unified banking industry stance.
- Tightened Yield Policies: The draft language effectively prohibits earning yield on idle stablecoin balances, narrowing discussions to whether issuers can offer rewards tied to specific user activities, which represents a significant setback for crypto policy goals and may impact market strategies.
- Enhanced Regulatory Authority: The proposed anti-evasion language would empower the SEC, Treasury, and CFTC to enforce the yield ban, with civil monetary penalties of $500,000 per violation per day, a measure described as “encouraging” by banking sources, indicating an increase in regulatory enforcement capabilities.
See More
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- Pricing Advantage: Coinbase's prediction markets offer significantly better pricing compared to traditional sportsbooks, allowing users to lock in higher profits when betting on teams to win or against the spread, thereby enhancing investment returns.
- Real-Time Trading Flexibility: Unlike traditional sportsbooks, Coinbase's prediction markets enable users to trade in and out of markets at any time, aligning user interests with the platform's in a peer-to-peer model, which enhances user experience.
- Innovative Product Diversity: Coinbase provides a range of products that traditional sportsbooks cannot offer, including climate risk, Fed interest rates, and CPI markets, with expectations of innovation in sports derivatives markets over the next year, further expanding market boundaries.
- Enhanced Market Competitiveness: While sports markets attract significant attention, Gemayel emphasizes that the potential of prediction markets extends far beyond, and as user demand for diverse markets increases, Coinbase is poised for rapid growth in this sector.
See More
Bitcoin and XRP Prices Increase Following Crypto Bill Discussions, But a Rally Remains Unlikely.
- Bitcoin Price Movement: The price of Bitcoin is experiencing a rise after a period of decline over several days.
- Market Sentiment: There is cautious optimism in the market regarding potential crypto legislation.
See More
Changpeng 'CZ' Zhao Asserts 'Crypto Has Never Required a Bailout and Never Will' in Response to Senator Warren's Appeal to the Fed Against Rescues
Warren's Concerns: Senator Elizabeth Warren criticized the potential use of taxpayer dollars for a federal bailout of the cryptocurrency industry, specifically mentioning concerns about "crypto billionaires" benefiting from government support.
Zhao's Response: Changpeng Zhao, co-founder of Binance, responded to Warren's letter, asserting that the cryptocurrency industry does not need a bailout and emphasizing that it has never required government assistance.
Market Downturn: The cryptocurrency market has experienced significant declines, with Bitcoin's price dropping over 46% since its peak in October, raising concerns about the industry's stability and future.
Investor Losses: High-profile figures in the cryptocurrency space, including Zhao and Coinbase's Brian Armstrong, have reported substantial financial losses during the market downturn, highlighting the risks associated with cryptocurrency investments.
See More
