The rating agency Moody's issued a negative outlook for the assets of the Coinbase exchange

Article Reading Time:
1 min.

Moody's analystsdowngraded the corporate rating of shares of the American Coinbase Global to B2, and the rating of unsecured bonds to B1. The outlook for Coinbase was changed from stable to negative.

The rating revaluation of the assets of the largest American cryptocurrency exchange followed immediately after the filing
US Securities and Exchange Commission (SEC) lawsuit dated June 6, 2023.

Moody's explains thatexperts took into account the SEC's statement and the assertion that Coinbase acted as an unregistered securities broker, a national securities exchange and at the same time a clearing agency. And most importantly: it did not register a crypto asset staking program as a service with the SEC.

In addition, the Coinbase rating has been downgradedinfluenced by the fact that after the SEC's statement of claim was received, similar claims were sent to the exchange for violation of the provisions of the securities law by the regulatory authorities of several US states.

Moody's stated that possibleRegulatory consequences for Coinbase include disgorgement of ill-gotten gains, interest and fines, and adverse business impacts, including staking rewards. Now Moody's experts find it difficult to fully assess the timing and financial consequences of solving these problems.

Released on Bits.Media
analysis of the reasons and possible consequences of the legal confrontation between US regulators and the largest players in the digital asset sector Binance and Coinbase.