Robinhood Positioned As Top ‘Crypto Deregulation’ Trade, Says Bernstein – Robinhood Markets (NASDAQ:HOOD)

Robinhood Markets Inc. HOOD has been identified as the leading beneficiary of potential regulatory shifts in the cryptocurrency sector, according to a Bernstein report.

What Happened: The research firm highlighted the brokerage platform as the “Top ‘Crypto Deregulation’ Trade,” increasing its price target to $51, up from $30, reflecting a 46% upside.

In a note issued on Wednesday, Bernstein attributes Robinhood’s potential for significant growth to a combination of regulatory changes and a diversified product pipeline.

“HOOD’s crypto revenues for 2025E have been increased by 20%, driven by new token listings and expanded product offerings,” the report…

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LATEST: Robinhood Leads as Best Crypto Deregulation Trade, Says Bernstein

Robinhood’s stock surged as Bernstein raised its price target from $30 to $51, reflecting optimism for significant regulatory shifts under a possible Trump-led SEC. Early Wednesday, shares climbed over 2% to $36, driven by prospects of a more crypto-friendly environment. This adjustment underscores the platform’s robust positioning to leverage favorable policies.

Currently, Robinhood offers a modest selection of 19 crypto tokens, but lacks in staking, lending, and derivatives services. However, analysts suggest that a pro-crypto stance by the SEC could allow the company to expand its offerings substantially. This would potentially include advanced services that could dramatically increase its revenue streams.

Further bolstering its strategic position, Robinhood’s recent acquisitions, including Bitstamp and a key European platform, pave the way for introducing staking, stablecoins, and lending services. With easing regulatory barriers, Robinhood is set to capture a larger slice of the expanding crypto market, highlighting its potential for remarkable growth.

LATEST: South Korea Sets 20% Crypto Tax for 2025, Raises Exemption Limit

South Korea’s Democratic Party has announced it will proceed with a cryptocurrency taxation plan starting January 2025, eschewing further delays. This decision follows previous postponements from the original January 2022 start date due to significant investor pushback. The party aims to enforce a 20% tax rate on crypto gains, incorporating local taxes to total 22%.

The party proposes modifications to the initial tax scheme by significantly raising the exemption limit from 2.5 million Korean won ($1,795) to 50 million won ($35,919). This adjustment is intended to alleviate the tax burden on small-scale crypto investors, effectively exempting the majority from the gains tax due to the volatile nature of the market.

Set for a vote by the National Assembly’s tax subcommittee on November 25, followed by a general assembly review the next day, the amended plan also introduces provisions to aid in tax calculations when acquisition costs are unclear. This measure is seen as a strategic move to foster growth and stability within the burgeoning cryptocurrency sector in South Korea.

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MiCA compliance will drive Europe into a crypto consolidation frenzy

MiCA compliance is the main catalyst that will separate winners from losers across Europe’s crypto industry. Companies that embrace the framework’s rigorous standards won’t just stay afloat; they’ll dominate, using compliance as a strategic weapon to outpace competitors, drive mergers and acquisitions, and secure their position in a rapidly consolidating market.

MiCA’s introduction is poised to ignite a surge in mergers and acquisitions across Europe’s crypto sector, as regulatory compliance becomes a key driver of deal-making. Firms that master MiCA’s standards won’t just protect their market positions — they’ll gain a competitive edge, leveraging compliance…

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Trump Media shares ride post-election, potential crypto acquisition wave 

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Shares of Donald Trump’s social media company, Trump Media & Technology, continued to fluctuate Tuesday following a rally spurred by reports that the president-elect is furthering his crypto business interests. 

The Financial Times reported Tuesday that Trump Media is in “advanced talks” to acquire crypto exchange Bakkt — a company founded and owned by New York Stock Exchange parent company Intercontinental Exchange (ICE).

The news pushed Bakkt shares 162% higher Monday and Trump Media (ticker DJT) posted a 17% gain. Bakkt sustained its rally into Tuesday (trading 7% higher…

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Trump nominates pro-crypto CEO to lead commerce department

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President-elect Donald Trump has nominated a crypto supporter to lead the Department of Commerce. 

The Wall Street Journal (along with Punchbowl News founder Jake Sherman) reported Trump’s expected pick of Cantor Fitzgerald CEO Howard Lutnick for that job on Tuesday morning. Trump later confirmed the selection on Truth Social.

There were previous reports that Lutnick — a leader of Trump’s transition team — was in the running for treasury secretary. 

We highlighted Lutnick’s remarks on bitcoin in a September edition of this newsletter. At the time, the CEO noted that…

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