Coinbase announced that it will once again offer cryptocurrency services in Hawaii, marking its return to the state after a seven-year absence. The move follows changes in Hawaii’s regulatory framework, which had previously posed challenges for digital asset businesses.
The Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions has recently eased its regulations, eliminating the requirement for a money-transmitter license for digital asset companies. The regulatory shift has paved the way for Coinbase to reenter the Hawaiian market, where it was previously unable to operate.
“We know there’s a lot of interest among Hawaiians to finally avail themselves of our services. We are super excited,” said Faryar Shirzad, Chief Policy Officer at Coinbase, in a recent interview.
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Hawaii Residents Can Now Trade Cryptos Using Coinbase
Coinbase’s return to Hawaii will allow residents to trade cryptocurrencies and participate in staking, a process where users support blockchain transactions by committing tokens.
The firm’s decision to resume operations in Hawaii comes amidst a rapidly evolving regulatory environment in the United States. Earlier this year, the Securities and Exchange Commission (SEC) approved exchange-traded funds (ETFs) that directly hold Bitcoin and Ether, signaling a shift in how digital assets are regulated.
This one was a long time in the works!
Aloha, Hawaii 🌊 https://t.co/C64AgBbJGj
— Brian Armstrong (@brian_armstrong) August 14, 2024
However, Coinbase continues to face challenges from the SEC. The agency has accused Coinbase of violating federal securities laws by listing 13 tokens that the agency considers to be securities.
The SEC further claimed that Coinbase has been operating as an “unregistered securities broker” since 2019, nearly two years before the company’s initial public offering in April 2021.
The company has filed countersuits against the SEC and the Federal Deposit Insurance Corporation (FDIC), alleging that these agencies failed to respond to Freedom of Information Act (FOIA) requests, undermining transparency and potentially marginalizing the cryptocurrency industry within the banking sector.
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Banking Giants Increase Coinbase Rating
Despite Coinbase’s legal challenges, Bank of America (BAC) has upgraded its rating on Coinbase shares from underperform to neutral, raising its price target from $110 to $217.
The bank’s analysts cited the favorable macro backdrop that has supported the cryptocurrency markets and increased trading volumes.
They also highlighted Coinbase’s commitment to expense discipline and diversification as factors that could contribute to improved earnings.
Investment banking firm KBW has also adjusted its outlook on Coinbase, increasing its price target from $160 to $230 while maintaining its market performance rating.
In a recent report, analysts led by Kyle Voigt expressed optimism about Coinbase’s revenue prospects in the near term. They highlighted the potential revenue opportunity arising from the growing outstanding balances of USD Coin (USDC), a stablecoin issued by Circle and backed by Coinbase.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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