Needham & Company has raised Coinbase's (NASDAQ:COIN) price target to $420 from $375, citing record-breaking December trading volumes and heightened altcoin activity.

What Happened: "Elevated volatility and a retail-driven surge have made December a landmark month for the platform," Needham analysts noted, according to The Block.

Bitcoin's (CRYPTO: BTC) surge past $100,000 and increased altcoin trading have fueled this momentum.

The firm's Q4 projections include $435 billion in trading volume and $2.1 billion in revenue.

For 2025, Coinbase is forecast to generate $8.9 billion in revenue, with earnings per share of $9.61.

Despite these achievements, Coinbase's stock dipped 8% on Monday, trading at $316.01 as of 12:28 p.m. ET, reflecting broader market trends.

However, Needham analysts remain optimistic, maintaining a "buy" rating on the stock.

Also Read: Bitcoin Saw 'Historic Rally' In November Thanks To Trump Win, Says JPMorgan

Why It Matters: The announcement comes as Coinbase CEO Brian Armstrong called for reforms to what he described as a "glaring failure" in global Anti-Money Laundering (AML) regulations.

In a post on X (formerly Twitter) on Sunday, Armstrong highlighted the inefficiency of current AML policies, which cost $213 billion annually while intercepting only 0.2% of illicit activity, according to UN data.

"Anti-Money Laundering regulations have been a policy failure," Armstrong wrote.

Referring to the Trump administration's newly established Department of Government Efficiency (D.O.G.E.), he added, "Sounds like a job for @DOGE."

Armstrong's comments echo concerns that AML regulations disproportionately harm legitimate consumers and small businesses.

Critics argue that financial institutions, burdened by stringent compliance requirements, often engage in de-banking practices—closing accounts or denying services to individuals and businesses deemed risky.

John Arnold, co-chair of Arnold Ventures, has also criticized the current AML framework, arguing it shifts enforcement burdens onto private financial firms.

This, he said, incentivizes banks to prioritize risk avoidance, often at the expense of lawful account holders.

Amid this backdrop, Coinbase has seen robust activity in the crypto market, with December trading volumes on track to set new records.

Armstrong's reference to D.O.G.E. has resonated with the crypto community, as the agency's acronym coincides with Dogecoin (CRYPTO: DOGE), the meme-inspired cryptocurrency.

• Record Week: Bitcoin ETFs Net $2.5 Billion In Inflows, Ethereum ETFs Took In $1.2 Billion

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