Coinbase shares have surged to an 18-month peak following significant developments in the cryptocurrency landscape. The uptrend in price coincides with the legal troubles faced by its rival exchange, Binance, and its former CEO Changpeng “CZ” Zhao, who recently pleaded guilty to charges of money laundering and sanctions violations in the United States.
Closing at $119.77 on November 27, Coinbase reached its highest point since May 5, 2022, when it concluded at $114.25, based on TradingView data. This marks a notable increase of approximately 256.5% year-to-date. Despite this positive momentum, Coinbase shares are still down by 65% from their all-time high of nearly $343 on November 12, 2021.
The surge in Coinbase’s valuation occurred shortly after Binance and CZ settled with the U.S. government for $4.3 billion, which included CZ stepping down as CEO and Binance accepting compliance monitors from the U.S. Justice Department and Treasury Department for up to five years.
Interestingly, Coinbase’s recent success is not solely attributed to the downfall of its competitor. Analysis by Bloomberg ETF analyst James Seyffart reveals that Coinbase is the custodian for 13 out of the 19 spot crypto ETFs awaiting approval from the U.S. Securities and Exchange Commission (SEC). This positions Coinbase favorably in the growing market for U.S. spot Bitcoin and Ether exchange-traded funds.
However, amidst these achievements, Coinbase faces legal challenges, including a lawsuit from the SEC. The regulatory body alleges that Coinbase failed to register with them and listed tokens that violated U.S. securities laws. In response, Coinbase has contested the lawsuit, questioning the SEC’s jurisdiction over the cryptocurrency industry.