Thoughts on Coinbase’s Regulatory Framework and NFT Marketplace
<p>Analysts at Oppenheimer provided their thoughts on <a href='https://financialmodelingprep.com/financial-summary/COIN'>Coinbase Global, Inc. (NASDAQ:COIN) </a> following the company’s announcement related to its regulatory framework and NFT marketplace.</p>
<p>The company published a Digital Asset Policy Proposal on Oct 14, suggesting a new regulatory framework for the digital assets industry. While EU, UK, Singapore, Japan, etc. have a unified approach to regulate digital assets, US appears to be behind. The proposed framework laid out four key pillars for digital assets: 1) separate framework; 2) designate one regulator and self-regulatory organization; 3) investor protection; and 4) interoperability and fair competition. While it is hard to predict where the final regulatory framework will ultimately land, the brokerage believes the spectrum is largely defined. </p><p>Despite it taking time, the brokerage sees a path toward regulatory clarity, which is a net positive for the stock and the industry longer term.</p>
<p>Also, the brokerage believes the NFT (Coinbase announced the launch of its own NFT marketplace on Oct 12) is a big positive to the company longer-term because it could drive: 1) meaningful incremental revenue (trading & custody); 2) fee rate expansion; and 3) diversification.</p>

NASDAQ:COIN