Citi upgraded Coinbase to buy from neutral and raised its price target to $345 from $260.

The crypto exchange could benefit from an improving regulatory regime in the U.S., the report said.

Coinbase could also profit from a U.S. crypto catchup, the bank said.

Crypto exchange Coinbase (COIN) is likely to benefit from an improving regulatory regime in the U.S. after the presidential election in November and the Supreme Court’s overturning of the Chevron precedent, Citi (C) said in a research report on Tuesday upgrading the shares.

Citi raised Coinbase to buy from neutral and increased its price target to $345 from $260. The shares were little changed in the premarket, trading at around $266 at publication time.

The bank said the stock could respond positively to an improving regulatory environment as a result of the U.S. election and increased confidence in its legal strategy following the overturning of the Chevron Deference Doctrine.

“Notwithstanding the increased turbulence in the upcoming U.S. elections, we believe the risk/reward setup for Coinbase, particularly as to its defense against the Securities and Exchange Commission’s (SEC) lawsuit, has improved markedly in the past few weeks,” analysts led by Peter Christiansen wrote.

The launch of spot ether (ETH) exchange-traded funds (ETFs) in the U.S. later Tuesday could also be a tailwind. Their introduction suggests the potential for more crypto ETFs to come to market, increased adoption of cryptocurrencies more generally and a larger custody revenue opportunity for the crypto exchange, the report said.

While the stock has already risen 52% year-to-date, Citi notes that the upside opportunity from a more benign regulatory backdrop could be too large to ignore, “potentially unlocking sidelined institutional capital, investment, and increased crypto-native and traditional finance collaboration.”

Coinbase could also benefit from a “U.S. crypto catchup” versus higher on-chain activity and liquidity that has developed abroad, the report added.

Read more: Coinbase Unveils Web App to Track Personal On-Chain Wallets