Republican Sweep in U.S. Election Would be the Most Bullish Outcome for Coinbase and the Crypto Market: Citi

As a seasoned investor with a keen eye for market trends and political dynamics, I find the recent Citi report on the potential impact of the U.S. election on Coinbase (COIN) and the broader crypto market intriguing. Having navigated through numerous bull and bear markets, I can attest that understanding the political landscape is as crucial as technical analysis in making informed investment decisions.

If the Republicans win big in the upcoming U.S. election, it could be very positive for Coinbase (COIN) and the entire cryptocurrency market. On the other hand, if Vice President Kamala Harris becomes president and Congress remains divided, this could bring more unpredictability to the digital assets industry, according to a report by Citi (C), published on Wednesday.

Analysts headed by Peter Christiansen stated that the Trump/Vance team has openly supported changes in digital assets. They emphasized that a Republican-controlled Senate is crucial for passing legislation such as FIT21 and appointing pro-cryptocurrency leaders within government agencies. Moreover, they suggested that the process of digital asset reform could proceed more swiftly if both houses of Congress were in agreement.

Even if the Grand Old Party (GOP) wins in the Senate while Democrats prevail in the House, this combination would still bode well for Coinbase and the cryptocurrency markets, according to the report. The U.S. elections are set for November 5, with results expected on November 8.

As an analyst, I’ve observed that the current House Financial Services Subcommittee consists of several Democratic members who are firmly opposed to cryptocurrencies. Yet, it is plausible that this anti-crypto stance may not prevail overwhelmingly, as there appears to be a sizeable pro-crypto coalition composed of both Democrats and Republicans.

If Harris were to win and the Republicans took control of Congress, there could be an unpredictable impact on cryptocurrency markets, as she hasn’t clearly outlined her crypto policy objectives yet, according to the bank. Conversely, a Democratic administration would probably retain several current agency heads to sidestep potential hurdles in Senate confirmation, which might result in continuity of existing policies.

If Harris wins the election and Congress remains divided, it could create the greatest ambiguity regarding digital assets. This situation might present obstacles for Senate confirmation of appointees who could impact these assets, and investors in Coinbase may not be optimistic that crypto legislation would receive sufficient backing from the Senate to pass.

According to Citi, they recommend purchasing shares of Coinbase. They’ve lowered their predicted price to $275 from the previous $345. Early on Friday, the stock increased by 2.7%, trading at $209.65.