TechFlow news, July 15 — According to Zhitong Caijing, research firm Argus recently initiated a "Buy" rating on Coinbase Global, stating that the cryptocurrency exchange has maintained strong growth momentum, and the recently passed Crypto Innovation and Regulatory Act could become a new engine for its business expansion.
Argus analysts Kevin Heal and Masako Inagaki noted in their report that Coinbase’s continuous investments in R&D and strategic acquisitions are expected to effectively increase the platform's daily active user base. However, they cautioned that the current stock valuation already exceeds fundamentals. Specifically, Coinbase’s P/E ratio is now higher than those of traditional exchange peers such as ICE (ICE.US), NDAQ (NDAQ.US), CME (CME.US), and CBOE (CBOE.US). Nevertheless, analysts believe the company’s leading profit margins and growth potential during bull cycles justify the near-term premium.
With the advancement of three key legislative proposals during the U.S. "Crypto Week" and traditional financial institutions accelerating their moves into crypto, Coinbase, as a compliance leader, stands to benefit continuously from market expansion. The analysis suggests that under a clear regulatory framework, the industry's "bad money drives out good" phenomenon will be curbed, and platforms with technological advantages and compliance credentials will dominate the next phase of competition.
