- A Trump administration will loosen crypto regulation.
- Robinhood will be the biggest winner from this new environment, analysts say.
A Donald Trump presidency will send Robinhood’s revenue soaring as friendlier regulation allows the trading platform to expand its crypto offerings, Bernstein analysts said in a research note on Wednesday.
Under a Securities and Exchange Commission led by arch crypto-sceptic Gary Gensler, the trading platform has been cautious about what crypto products it offered.
That looks set to change under a potentially pro-crypto SEC, Bernstein said, and Robinhood will be “the biggest beneficiary of crypto regulatory tailwinds.”
Trump has promised the industry pro-crypto policies, like a national Bitcoin reserve. And with a more crypto-friendly Congress in place, the industry hopes for laws putting in place tailored regulation for crypto.
Bernstein revised Robinhood’s revenue projections for 2025 to $4.19 billion from $3.85 billion. The analysts wrote that Robinhood will now be able to list more tokens and offer more crypto-related products like stablecoins or staking.
The analysts raised the target for Robinhood’s share price from $30 to $51. Robinhood, under the ticker HOOD, is currently trading at $35. If Bernstein’s prediction holds true, it would give the company a market cap north of $45 billion.
Robinhood is part of a wave of financial services firms that have increasingly pushed into crypto. Other examples incluse UK neobank Revolut as well as payment firms PayPal and Stripe.
More token listings
Robinhood took a conservative approach to its crypto offerings to avoid running afoul of the SEC, Bernstein said. It listed only 15 tokens. Competitor Coinbase lists 250-plus.
Since the elections, Robinhood has added four more tokens — Solana, Cardano, Ripple, and Pepe.
The platform has historically also steered clear of services like staking, lending, and stablecoins, which were frowned upon by the Gensler SEC, though they were offered by competitors, Bernstein said.
Even with these constraints, the company outperformed across key metrics, the analysts said, growing crypto revenues 160% year on year.
Bernstein said it expects Robinhood to list more tokens, launch new crypto product lines, and continue its expansion into the EU and UK, grabbing more market share.
Robinbood has already launched Solana staking in the EU, and is part of a consortium launching a new dollar-pegged stablecoin.
Its $200 million acquisition of crypto exchange Bitstamp and its addition of an EU crypto platform “should further boost value-added crypto services,” the note said.
Crypto market movers
- Bitcoin is up 1.3% over the past 24 hours to about $93,700.
- Ethereum is down 1.2% over the same time period to $3,100
What we’re reading
- What you missed this week ― Milk Road
- Basketball legend Shaquille O’Neal signs $11m settlement of Astral NFTs, Galaxy tokens lawsuit — DL News
- First app to hit $1B in revenue? — Milk Road
- Why a16z’s uproar over the Lido DAO ruling is ‘overblown’ — DL News
- Stablecoin Supply Hits Record $174.7 Billion, Boosting Crypto Liquidity to All-Time High — Unchained
Reach out to the author at joanna@dlnews.com.
