According to Citi's most recent report, a Republican victory in the U.S. presidential election may greatly boost Coinbase and the broader cryptocurrency industry. Analysts led by Peter Christiansen believe this will speed up digital asset reform.
A GOP Senate victory combined with a Democratic-controlled House would still benefit crypto. The current pro-crypto contingent on the House Financial Services Subcommittee would most certainly outnumber anti-crypto Democrats.
The report underlines the uncertainties surrounding Harris' victory. A Harris victory with a Republican Congress might result in agency head retention to avoid Senate confirmation problems. This is despite her somewhat positive stance on crypto.
What is the least favorable scenario for cryptocurrency markets? Harris winning with a divided Congress might jeopardize prospective cryptocurrency legislation and Senate confirmations. Citi retains a buy rating on Coinbase shares but lowers the price target to $275 from $345. In early Friday trading, COIN was trading around the $204 level.
The U.S. election is taking place on November 5, with results due November 8. Crypto investors will keenly monitor how the political landscape impacts the future of digital assets.
