Investors Who Put Their Pennies in Coinbase Could Get Pinched
By Justin Lahart
Coinbase COIN -2.44% Global’s stock valuation is predicated on a view that cryptocurrencies will only gain in popularity and acceptance in the years ahead. Regulators could have a thing or two to say about that in the coming months. …“I think that’s one of the arguments that are offered in favor of a digital currency, that particularly you wouldn’t need stable coins, you wouldn’t need cryptocurrency if you had a digital U.S. currency,” Mr. Powell said before Congress last month. “I think that’s one of the stronger arguments in its favor.” It all sets the stage for what could be a trying period for cryptocurrencies, and by extension, Coinbase. The infrastructure bill making its way through Congress includes a provision to toughen tax enforcement of crypto transactions. Regulators may also start making more noise. In addition to the Fed and SEC, Karen Petrou, who runs policy-analysis firm Federal Financial Analytics, believes that an array of regulatory agencies, including the Consumer Financial Protection Bureau, the Financial Stability Oversight Council and the Office of the Comptroller of the Currency could step into the fray.