The Securities & Exchange Commission of the United States is said to have agreed to dismiss its enforcement case against Coinbase Global Inc (NASDAQ: COIN).

Shares of the crypto firm are up more than 5.0% at the time of writing.

Speaking with CNBC today, Brian Armstrong – the company’s chief executive dubbed it a huge development not just for COIN but for the crypto market at large.

It’s a signal that the crypto industry will indeed get some regulatory clarity under the Trump administration, following years of unlawful attacks from “a small group of activists in the prior administration,” he added.

Despite today’s surge, Coinbase stock that could soon join the S&P 500 index is down roughly 10% versus its year-to-date high at writing.

Trump 2.0 could be a tailwind for Coinbase

Coinbase chief executive Brian Armstrong expects a “domino effect” in the crypto market as the new SEC continues to drop all the “bogus cases”.

The US regulator had accused Coinbase of operating an unregistered securities exchange in 2023. At the time, the company was charged with failure to register its crypto staking programme as well.

However, the lawsuit was brought on by Gary Gensler – the former head of the Securities & Exchange Commission.

The new US government is broadly expected to be pro-crypto.  

Note that an SEC representative refrained from commenting on the Coinbase update on Friday.

Coinbase had an exceptionally strong Q4

Trump’s promise of a friendlier environment for the crypto industry under his tenure helped Bitcoin surpass the closely watched $100,000 level in the weeks following election day.

A sharp interest in cryptocurrencies contributed to a whopping 130% year-on-year increase in Coinbase’s revenue in its fourth financial quarter.

The Nasdaq-listed firm handily topped Street estimates in its fiscal Q4 and painted a rosy picture of what the future holds as “the opportunity in front of us right now is unprecedented, and we’re well positioned to meet the moment.”

Coinbase shares, however, do not currently pay a dividend and are, therefore, unattractive for income investors.

Is it worth investing in COIN at current levels?

Coinbase stock is currently up some 70% versus early September but Wall Street continues to see significant further upside in shares of the crypto company.

The consensus rating on COIN sits at “overweight” with analysts calling or upside in the stock to $336 on average, which indicates potential for another 25% gain from current levels.

The Street-high target of $475 even acknowledges the possibility of Coinbase shares nearly doubling from here, particularly as Bitcoin continues to hit new milestones in 2025.

On Friday, Blockstream chief executive Adam Back said BTC is in the “early stages of a bull market”.

Back sees ample room for the world’s largest cryptocurrency to run further to the upside on the back of strong retail and institutional inflows.

The post Coinbase says SEC set to drop enforcement case against the crypto exchange appeared first on Invezz

Amid growing scrutiny and a shifting political landscape, Coca-Cola is making a bold statement about the importance of diversity, equity, and inclusion (DEI).

The beverage giant has explicitly warned that any changes to its policies designed to diversify its workforce could have adverse effects on its business.

Diversity as a business imperative: Coca-Cola’s firm stance

In a recent annual filing, the company asserted that its business could be negatively impacted if it were “unable to attract or retain specialized talent or top talent with diverse perspectives, experiences, and backgrounds.”

“Our diverse, high-performing global employee base helps drive a culture of inclusion, innovation, and growth,” Coca-Cola stated.

We aspire to develop a global workforce with diverse perspectives, experiences, and backgrounds that reflect the broad range of consumers and markets we serve around the world.

The company further emphasized its commitment to “providing access to equal opportunities and fostering belonging both in our workplaces and the local communities we proudly serve,” underscoring that these efforts are “critical” to its growth and success.

Coca-Cola cautioned that a failure to maintain a corporate culture that “fosters innovation, collaboration, and inclusion” could disrupt its operations and “adversely affect our business and our future success.”

This strong declaration signals the company’s deep conviction in the value of DEI.

DEI under scrutiny

Coca-Cola’s statement comes as a growing number of major companies announce rollbacks of DEI initiatives following recent executive orders, which ended federal diversity programs and placed federal DEI staffers on leave.

Notably, Coca-Cola’s industry rival PepsiCo has already rolled back some of its DEI policies this month.

These changes included removing a breakdown of workforce demographics from a recent filing and deleting a statement about how a “culture of diversity, equity, and inclusion is a competitive advantage” that retains talent and strengthens its reputation. Coca-Cola and PepsiCo are both government contractors and therefore directly impacted by changes to federal policy.

Balancing compliance and commitment

While the executive orders primarily targeted DEI efforts in the public sector, they also call for encouraging the private sector to end “illegal DEI discrimination and preferences.”

When asked last week whether the company would be altering its DEI policies to comply with the executive order, Coca-Cola’s chief financial officer, John Murphy, told BI that it was “focused on having the best talent around the world,” according to Bloomberg.

However, Murphy added that Coca-Cola would “follow any change in regulations at the national level,” suggesting a willingness to adapt to evolving legal requirements while maintaining its core commitment to diversity.

The situation presents a delicate balancing act for the company as it seeks to reconcile its business goals with evolving political pressures.

The post Why Coca-Cola says DEI is essential for business success appeared first on Invezz

Although inflation has eased from its peak, it remains a concern for investors and policymakers alike.

The consumer price index (CPI) has fallen from a 9.1% high in June 2022 to 3% in January, but it remains above the Federal Reserve’s 2% target.

“The progress toward 2% inflation has stalled out, and the Fed knows it,” said Greg McBride, chief financial analyst at Bankrate.com.

Some Fed officials are also wary of the impact that tariffs could have on inflation in the months ahead.

With inflation still a key issue, investors looking to preserve their purchasing power are turning to Treasury Inflation-Protected Securities (TIPS) as a potential safeguard, a report by CNBC said.

What are TIPS and how do they work?

TIPS are issued by the US government and function similarly to standard Treasury bonds but with a key difference: their principal value adjusts with inflation.

When inflation rises, so does the bond’s principal, ensuring that investors retain their purchasing power.

By contrast, regular Treasury bonds and certificates of deposit (CDs) may lose value in real terms if their yields fail to keep pace with inflation.

The benchmark 10-year Treasury bond is currently yielding just under 4.5%, a rate that could struggle to outpace inflation in the long run.

TIPS are available in 5-, 10-, and 30-year maturities.

When they mature, investors receive either the adjusted principal or the original principal, whichever is higher.

Interest payments, calculated based on the adjusted principal, increase as inflation rises.

Growing investor interest in TIPS

Recent concerns over tariffs and potential inflationary pressures have led to renewed interest in TIPS, according to a report by Wells Fargo Investment Institute.

“TIPS continue to be a valuable tool for protecting purchasing power in an inflationary environment,” said Douglas Boneparth, president of Bone Fide Wealth.

“With yields currently near decade highs, they’re certainly more attractive than in recent years.”

However, TIPS are not without risk.

Colin Gerrety, a client advisor at Glassman Wealth Services, pointed to 2022 as an example of how rising interest rates can negatively impact TIPS returns.

“Let’s say inflation spikes and interest rates rise at the same time,” he explained.

“TIPS might actually lose money if the negative impact from the rise in rates exceeds the adjustment that occurs due to inflation.”

Indeed, TIPS had a negative 11.85% return in 2022, though they still outperformed standard US Treasurys.

How to accommodate TIPS into a broader strategy

As investors weigh their options, some experts recommend a diversified approach that combines TIPS with other income-generating assets.

Winnie Sun, managing director of Sun Group Wealth Partners, advises a mix of fixed-income TIPS, dividend-paying stocks, and laddered CDs to balance risk and return.

“I usually advise clients to view TIPS as one part of a diversified portfolio rather than a standalone solution,” said Boneparth.

While TIPS offer inflation protection, investors must also consider tax implications and the potential for lower returns if inflation moderates.

As the Federal Reserve continues to monitor inflation trends, the role of TIPS in an investment portfolio remains an important consideration for those looking to safeguard their assets.

The post Investors turn to TIPS as inflation concerns persist despite easing prices: factors to consider before investing appeared first on Invezz

In recent months, illegal immigrant deportations from the United States have emerged as a serious humanitarian and economic problem for Latin America, especially for countries like Venezuela with eroded democracy and serious economic issues.

Following the expulsion of 177 Venezuelan migrants from the United States to their home country, the complexity of the case has prompted serious concerns about the impact on those targeted and the long-term ramifications for both countries.

The political background of the Venezuelan migration crisis

According to a Statista estimate dated September 2023, at least 545,200 Venezuelans migrated to the US.

In recent years, these numbers might have doubled.

Driven by economic, political, and social crises, millions of Venezuelans have chosen to emigrate during the two terms of President Nicolás Maduro, who first took office in 2013 and assumed a controversial third term on January 10.

His new term is followed by widespread allegations of electoral fraud, casting further shadows over his leadership and prompting serious concerns about the country’s future.

In the wake of the disputed elections held on July 28, opposition candidate Edmundo González and prominent leader María Corina Machado have asserted that they won with 70% of the vote.

However, the National Electoral Council failed to release official results, leading to skepticism both domestically and internationally.

The United States and many regional governments have openly challenged Maduro’s claim to victory, with some acknowledging González as the legitimate president.

Amidst reports of arrests and human rights violations, a sense of instability permeates the political landscape in Venezuela.

This dire situation has prompted many, including individuals like Maite, to consider leaving their homeland in search of safety and better opportunities elsewhere.

The ongoing turmoil highlights the pressing need for change and the yearning of countless Venezuelans for a more stable and equitable future.

Humanitarian concerns

The return of deported Venezuelans has caused fury and alarm among human rights activists.

Many of these people were fleeing desperate conditions in Venezuela, such as poverty, political repression, and violence.

The US government’s decision to deport them back to a country in economic decline is concerning.

When these migrants return, they frequently find themselves in a country that has been devastated by a humanitarian crisis.

The Venezuelan economy is currently undergoing a two-digit inflation which makes it difficult for returnees to reintegrate into society efficiently.

Economist Aldo Contreras recently commented on the status of deportees returning to Venezuela, saying, “The issue of deportees is still not statistically significant.”

This demonstrates the relatively minor impact that current returnees have on the overall economy- for now- especially given the enormous number of nearly 8 million people who have left the country.

President Nicolas Maduro declared upon their arrival that “these are not criminals (…) they came due to the impact of US sanctions, and we must welcome them back as productive members of society.”

One of the top concerns of Venezuelan leaders is the future that these deportees might face upon their arrival to Venezuela, as most of them are persecuted by the government due to political reasons.

“Now those who were in Guantánamo have arrived in Venezuela. The (Venezuelan) regime will protect anyone who is a member of the Tren de Aragua and those who are innocent; however, they will imprison the dissident military members or volunteers from July 28th, and we may never hear from them again, as has already happened with many from the first group” said David Smolansky, an opposition leader exiled in the US and a spokesperson of the Venezualan migrants, commenting on the new wave of Venezuelan deported.

Financial implications

The repatriation of Venezuelans may appear to be a political tactic, but it has major financial consequences for the already suffering country.

The flood of deported people might add to the strain on an economy that is already suffering from a devastating crisis.

With roughly 80% of the population living in poverty, the unexpected return of the people in large numbers might exacerbate existing problems in the long term.

While some efforts are being made to assist these returnees in starting enterprises and generating income, Contreras remains cautious.

He underlined that, while Maduro’s government announced a $10 million fund for these returnees, information regarding how the amount will be used is scant, leading many to question the usefulness of such initiatives.

He also stated that: “We must wait in the coming days to see if the number truly increases significantly.”

The possible increase in returnees may need economic initiatives by the Venezuelan government to accommodate them.

This issue is exacerbated by the US government’s recent plans of termination of the Temporary Protected Status (TPS) for about 600,000 Venezuelans, leaving many people in limbo.

A divided response

Both governments’ responses have been very different. While the US government has presented deportations as a law enforcement problem, Venezuelan officials call them unjust and detrimental.

Venezuelan officials stated on Friday that one of the 177 Venezuelan immigrants who returned from the United States after being incarcerated in Guantanamo is wanted by Interpol for an alleged crime committed in Ecuador.

This raises worries about the possible difficulties and consequences of reintegrating these people into society, as the government attempts to navigate the complexity of their legal position and public safety.

Invezz’s request for comments from Venezuela’s Foreign Relations Ministry was unanswered at the time of publishing.

A spokeswoman for the Department of Homeland Security stated that 126 of the deportees had criminal charges or convictions, including 80 who were allegedly associated with the Venezuelan group Tren de Aragua.

The official said that 51 had no criminal history.

The National TPS Alliance and seven Venezuelans have filed a lawsuit against the Trump administration over its decision to revoke Temporary Protected Status (TPS) for approximately 350,000 Venezuelan immigrants by April 7.

TPS allows individuals to legally live and work in the US if returning to their home country is unsafe. The revocation could result in mass deportations of Venezuelans currently under this protection.

The complaint, filed Wednesday night in San Francisco’s U.S. District Court for the Northern District of California, alleges that Homeland Security Secretary Kristi Noem unlawfully revoked an 18-month extension granted by the Biden administration just before President Biden left office.

Most of the Venezuelan legal migrants in the United States were strong supporters of Trump during his campaign in the hope he would strongly address the Venezuelan crisis and promote a change in government, but after his recent decisions to deport people, many of these voters feel betrayed and hopeless.

The post Venezuelan deportations from the United States: is there a humanitarian and financial crisis ahead? appeared first on Invezz