Robinhood appears well poised to attract a larger user base and take its place as one of the leading platforms in the crypto industry.
Wall Street investment bank Bernstein has tipped Robinhood Markets Inc to be a major winner if US crypto regulations ease under a potentially pro-crypto Securities and Exchange Commission (SEC). This is contained in a research report that the bank published on Wednesday.
Bernstein Raises Robinhood’s Target Price amid Optimism Over Pro-Crypto SEC
According to Bernstein, hopes about regulatory changes have received a boost since Trump won the presidential election. So, with the regulatory changes expected to take place during his administration, the popular trading app looks set to gain massively, Bernstein noted.
On this premise, the broker has now increased its price target for Robinhood shares from $30 to $51.
Robinhood has been operating under strict crypto regulations. To date, the platform has listed only 19 crypto tokens for its American clients. These include Solana (SOL), Cardano (ADA), and XRP, which it added just last week following Trump’s famous win.
While its crypto services remain limited, with no revenue from staking, lending, or derivatives, Bernstein, alongside many analysts, believes that Robinhood’s fortunes might be set to change. That is if the current regulatory restrictions are eased.
Expanding Crypto Services Through Strategic Moves
Bernstein believes that the future success of Robinhood is now looking more likely than ever. especially in light of its recent acquisition of Bitstamp Exchange and its European platform.
With that acquisition, the exchange could expand its offerings to include staking, stablecoin access, and lending services. These services would undoubtedly give Robinhood the well-needed opportunity to gain more ground in the broader crypto market and also increase its revenues.
More than the prospects of its recent acquisition, Bernstein’s report also notes that the possibility of Robinhood listing more tokens is now higher. However, that would also majorly depend on the emergence of a friendlier regulatory environment.
In any case, the future is looking bright, and Robinhood appears well poised to attract a larger user base and take its place as one of the leading platforms in the crypto industry. As Coinspeaker reported last week, the firm saw its global reach hit 24 million users.
Reacting to the latest developments, Robinhood’s stock price rose more than 2% in early trading, reaching approximately $36.
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