If the tyres hold air, you’ll be fine.
Looking at your pictures I would not powder coat the frame yet. I’d try to restore the paintwork with some polish (and maybe T-cut) as the paint does not look all that bad. If you want to clean up the rack rub it back with something abrasive and paint with smooth Hammerite would be fine to start with. If you can’t get a good finish you can get that powdercoated later. Try tinfoil and WD-40 on the rusty chrome. Make sure the rear spindle is free to move and the rear forks are not seized. If they are don’t go riding it too far as that can damage the rear forks.
Looks fun. If you want a ‘restoration’ you have a good bike to start on, if you want to upgrade and improve it looks too nice for that.
The biggest problem will be the condition of the 36h wheel rims I suspect….!