Robinhood Primed for Success Amid U.S. Crypto Deregulation, Says Bernstein

New research from Bernstein suggests that Robinhood could significantly benefit from upcoming crypto deregulation in the United States under a pro-crypto Securities and Exchange Commission (SEC) if a Donald Trump-led administration takes action.

The brokerage has increased its price target for the platform from $30 to $51, highlighting its outperform rating for Robinhood shares.

The research indicated that Robinhood stands to gain substantially, as they are currently operating under strict regulations that limit the cryptocurrencies they can support, having only listed 19 tokens to date. Currently, they do not earn from staking, lending, derivatives, or stablecoins.

"With a new pro-crypto SEC, this is likely to change, and we anticipate Robinhood will benefit from these favorable regulatory conditions," said Bernstein analyst Gautam Chhugani.

The platform is expected to enhance its revenues by introducing new tokens and offering various crypto product lines, thereby expanding its market opportunity. Bernstein also anticipates that Robinhood's acquisition of the European crypto exchange Bitstamp will bolster its additional cryptocurrency services, including staking and lending.

Following the recent election, Robinhood included new cryptocurrencies such as Solana, Cardano, and XRP, catering to the growing demand for crypto trading among U.S. clients.