Citi analysts upgraded Coinbase (NASDAQ:COIN) to a Buy/High Risk rating, citing recent shifts in the U.S. political and legal landscape that could mitigate the company's regulatory risks. The upgrade follows changes in the U.S. election landscape and the Supreme Court's decision to overturn the Chevron precedent, which is viewed as a positive development for the cryptocurrency industry.

Citi analysts highlighted that the Supreme Court's decision could lead to increased judicial scrutiny of the SEC's enforcement strategy, potentially benefiting Coinbase. They noted that crypto defendants' ability to invoke the Major Questions Doctrine might result in a closer examination of the SEC's regulatory approach.

Coinbase's stock has surged 52% year-to-date (YTD), outperforming the overall cryptocurrency market, which has grown by approximately 45% during the same period. Analysts believe that a more favorable regulatory environment could unlock institutional capital and foster greater investment, enhancing collaboration between crypto-native and traditional financial sectors.