There are various reports that the terrorist organization Hamas has been using crypto, and the interesting thing is the connection that this has with Coinbase’s lobbying efforts. Check out the latest reports about this below.

Hamas and crypto use

Coinbase is facing regulatory challenges in the United States.

Despite its lobbying efforts to push Congress for increased clarity, Berenberg Capital Markets warned investors about the potential threats to Coinbase’s business from regulatory actions and litigation.

In a research note, Berenberg reiterated its “hold” recommendation on the stock and maintained a price target of $39.

According to Mark Palmer, an analyst at Berenberg, the primary driver of their cautious stance towards Coinbase is not the company’s operating performance in the next few quarters, but rather the regulatory challenges it faces in the US.

Reports that Hamas used cryptocurrency for fundraising ahead of attacks in Israel may further complicate Coinbase’s efforts to push for friendlier legislation from Congress.

Last week, Israeli authorities froze crypto accounts used by Hamas for its fundraising efforts, according to a local report. Israeli authorities had seized, as of an April report, 190 Binance accounts linked to Hamas and Isis since 2021.

“While Hamas announced last April that it would no longer use crypto for fundraising due to the ability of authorities to track its movement on blockchain ledgers, we believe the recent headlines are likely to make clarity around the question of crypto’s legal status even more elusive,” Palmer said.

Coinbase’s shares went up by 4.3% on Tuesday to $78.26 at 11:26 a.m. ET, as per TradingView. Although the shares have dropped by 5.4% in the past month, they have gone up by 115% in the past year.

The company has been lobbying lawmakers to establish a legal framework that would make it easier for them to operate in the world’s most extensive crypto market.

Meanwhile, Coinbase is still fighting a legal battle with the Securities and Exchange Commission.

Palmer stated that “The company’s defense against the lawsuit that the SEC filed against it appears likely to be an overhang on its share price for some time to come.”

He also added that Berenberg had increased its estimate of the company’s consumer transaction revenue to $240.8 million from $210 million.

This reflects the expectation that its consumer take rate will contract at a slower pace than anticipated. However, he also believes that COIN’s consumer take rate is at risk of compression due to competition for market share within a lower-volume crypto space, according to the latest reports coming from the online publication The Block. 

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