- A Trump administration will ease crypto regulations.
- Robinhood will be the biggest winner in this new environment, analysts say.
A Donald Trump presidency will boost Robinhood’s revenue as more favorable regulation allows the trading platform to expand its crypto offerings, Bernstein analysts said in a research note on Wednesday.
Under the guidance of a Securities and Exchange Commission led by crypto skeptic Gary Gensler, the trading platform has been cautious about the crypto products it has offered.
That’s likely 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, such as a national Bitcoin reserve. And with a more crypto-friendly Congress in place, the industry is hoping for laws that put in place crypto-friendly regulations.
Bernstein revised Robinhood’s revenue projections for 2025 from $3.85 billion to $4.19 billion. Analysts wrote that Robinhood will now be able to list more tokens and offer more crypto-related products, like stablecoins or staking.
Analysts raised Robinhood’s stock price target from $30 to $51. Robinhood, under the ticker HOOD, is currently trading at $35. If Bernstein’s prediction holds true, that would give the company a market capitalization in excess of $45 billion.
Robinhood is part of a wave of financial services companies that have increasingly moved into crypto. Other examples include UK neobank Revolut as well as payment companies PayPal and Stripe.
More Token Lists
Robinhood has taken a conservative approach to its crypto offerings to avoid running afoul of the SEC, Bernstein said. It only listed 15 tokens. Competitor Coinbase lists more than 250.
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Since the election, Robinhood has added four additional tokens: Solana, Cardano, Ripple and Pepe.
Historically, the platform has also avoided services such as staking, lending and stablecoins, which were frowned upon by the Gensler SEC, despite being offered by competitors, Bernstein said.
Even with these constraints, the company outperformed in all key metrics, analysts said, growing crypto revenue 160% year-over-year.
Bernstein said he expects Robinhood to list more tokens, launch new crypto product lines and continue its expansion into the EU and UK, capturing 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 addition of a European crypto platform “is expected to further boost value-added crypto services,” the note said.
Crypto market players
- Bitcoin rose 1.3% over the past 24 hours to around $93,700.
- Ethereum is down 1.2% over the same period at $3,100
What we read
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