By Emily Bary
Coinbase shares reverse course and march higher as a judge weighs in on the essence of crypto tokens
Shares of Coinbase Global Inc. were among the cryptocurrency stocks rallying sharply Thursday after a federal judge deemed that Ripple Labs' token wasn't a security when sold to members of the general public on crypto exchanges.
See more: Ripple token not a security in retail sales, judge rules in partial win for crypto
The ruling is viewed positively for Coinbase (COIN), which is fighting a Securities and Exchange Commission lawsuit that charged the company with operating an unregistered national securities exchange and illegally selling various tokens that the SEC deemed securities.
While the judge said that Ripple sales to institutional investors did constitute unregistered sales, the partial victory for Ripple when looking at retail sales could bode well for Coinbase in its own regulatory battles.
Read: SEC Chair Gensler dismisses industry calls for recusal on crypto decisions
Coinbase's nearly 18% rally in afternoon activity comes as the stock bucks a downgrade from a Barclays analyst, who warned that it was still "winter" for the crypto markets and that regulatory pressures could linger. Shares had been down as much as 2.9% earlier in the session.
Other crypto stocks were seeing dramatic Thursday boosts as well. Shares of bitcoin-mining companies Marathon Digital Holdings Inc. (MARA) and Riot Platforms Inc. (RIOT) were each up more than 13% in afternoon action. Shares of MicroStrategy Inc. (MSTR), a software company that has sizable bitcoin holdings, were up about 8%, while shares of Robinhood Markets Inc. (HOOD), which offers crypto trading on its platform, were ahead more than 5%.
Don't miss:BlackRock's bitcoin ETF filing is a vote of confidence in Coinbase, one analyst says. Here's why.
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July 13, 2023 14:45 ET (18:45 GMT)
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