Coinbase Lobbying Strategy Faces Hurdles Following Hamas Crypto Use: Berenberg
Financial analysts at Berenberg view recent reports of Hamas crypto donations as a major stumbling block to the pace of positive crypto regulations globally.
In an Oct 18 research document, the wealth manager stated that Coinbase's intense digital asset lobbying efforts in the United States might be impacted by Hamas’ use of the asset to finance its operations.
Lead analyst Mark Palmer disclosed that the “cautious stance” towards Coinbase is not borne out of the firm’s operational performance in previous and future quarters but as a result of the legal hurdles posed by the Securities and Exchange Commission (SEC) and global bodies on the wider crypto market.
“The primary driver of our cautious stance toward Coinbase Global is not our concern about the company's operating performance during the next couple of quarters, but rather on the threats to its business from the various regulatory actions and litigation that it faces in the U.S.”
Despite the challenges faced, Coinbase continues to lead the push for legal clarity in the market and plans to influence Congress through lobby campaigns.
The recent Hamas incidents could now turn the tide away from the company as anti-crypto lawmakers now have a rallying point to delay regulations or pass more bottleneck regulations, a move which would tighten the market amid falling prices.
Over the past week, reports have emerged over the Hamas funding from digital assets resulting in wide seizures and more scrutiny.
Last week, Israeli authorities seized cryptocurrency in accounts linked to Hamas donations, a police statement reads.
“According to suspicions, with the outbreak of the war, Hamas' terrorist organization initiated a fundraising campaign on social networks, urging the public to
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