Analyst Projects $300 Target for Coinbase as CEO Criticizes Crypto Legislation
Coinbase's stock (COIN) has garnered significant attention following analyst Paper Bozz's optimistic technical analysis. This interest coincides with Coinbase CEO Brian Armstrong's strong critique of a Senate Banking draft bill on crypto market structure, highlighting its structural weaknesses. The combined developments have captured the focus of traders and regulatory stakeholders.
COIN Stock Poised for Growth Amid Senate Bill Delays
Analyst Paper Bozz shared insights on X, indicating a bullish divergence forming in COIN stock based on MACD and RSI indicators. This suggests a potential momentum shift despite existing price pressures. The analysis also identifies a secondary trendline indicating a possible bounce if buyer interest increases.
The weekly stochastic indicator suggests an oversold condition, hinting at diminishing seller control, though not confirming a full market reversal. Bozz also noted a descending broadening wedge pattern, suggesting a breakout could propel COIN stock to the $292 to $300 range.
Senate Bill Stalled Following Coinbase's Critique
Regulatory news adds complexity to the situation. The Clarity Act's progress has stalled, with the Senate postponing the markup after receiving criticism from Coinbase. This delay extends the timeline to at least February, reflecting the crypto industry's concerns.
Armstrong's Rejection of Senate Crypto Draft
In a recent interview, CEO Armstrong expressed that Coinbase cannot support the current Senate Banking draft, citing fundamental flaws. The company reviewed the bill shortly after its release. Armstrong's objections highlight why Coinbase and other firms oppose the bill, particularly regarding stablecoin rewards, which are crucial for providing competitive savings options.
Armstrong emphasized that crypto companies should not be limited to offering products already available through banks, as the bill's language could stifle competition, favoring traditional financial institutions. He also raised concerns about the regulatory approach, which seems to prioritize SEC oversight before CFTC involvement, diminishing the latter's role.
Armstrong contrasted traditional banks' fractional reserve lending, which invites strict oversight, with stablecoins like GENIUS, fully backed by short-term U.S. Treasuries. He also addressed a report by journalist Eleanor Terrett, who claimed that the White House might withdraw support for the Clarity Act. Armstrong refuted this in an X post, while Terrett defended her reporting as accurate, asserting that White House backing is contingent on a stablecoin yield agreement.