Despite Coinbase Global’s better-than-expected quarter, many analysts remain cautious about the crypto exchange’s long-term outlook, seeing the regulatory and regulatory landscape as a major obstacle for the stock. Shares were up more than 8% in marketing trading before the news, partly due to a smaller-than-expected loss. But even with this seemingly intact short-term outlook, Wells Fargo’s Jeff Cantwell cautioned that both the mid- and long-term trajectories look constrained, calling the regulatory landscape “a major roadblock.” 1D Mountain COIN Coinbase stock bounces as Cantwell earnings reiterate the stock’s disproportionate rating. He increased his price target on Coinbase to $43 from $40, but that still implies a drop of more than 10%. Bank of America’s Jason Kupferberg, who rates the stock as underperform, said “fundamental/long-term questions surrounding COIN’s core business remain.” He added that, “We maintain our cautious stance on COINs as we continue to think that retail crypto volume will remain weak and the regulatory overhang will linger for a while.” time.” An Uncertain Legal Outlook One of the biggest concerns for analysts is the uncertain regulatory environment for the company. Earlier this year, Coinbase received a notice from Wells from the Securities and Exchange Commission threatening to sue the company for potential securities violations. In a response in April, the company said an enforcement action against it would be “unsuccessful”. Goldman Sachs analyst Will Nance said he sees little near-term catalysts for increased retail adoption in the United States, adding that he has a negative outlook on the stock due to its “lack of reach.” look” around Coinbase’s growth and adverse regulatory effects. Nance has a sell rating on Coinbase stock. “We believe that new advances in retail crypto adoption and easing uncertainty around the US regulatory landscape may be necessary for stocks to scale back high,” he said. than”. Concerns about the company’s betting business also gave some analysts reason to pause. Staking is used by some investors to passively profit from their crypto holdings by tying tokens on the network for a period of time and offers a great revenue opportunity for exchanges transaction. JPMorgan’s Kenneth Worthington wrote: “While earnings were significantly better than expected, the outlook overall doesn’t look as good. “Volume is under further pressure in Q2 despite much higher crypto prices, USDC has dropped significantly, and changes to staking services at Coinbase may not have fueled the uptrend we were looking for. thought.” Worthington kept its neutral rating but raised its price target to $59 a share, up about 20% from Thursday’s closing price. – CNBC’s Michael Bloom contributed reporting