Coinbase’s stock was downgraded by the investment bank to “Neutral” in light of the exchange’s ongoing legal dispute with American regulators.
After Citi downgraded shares of the cryptocurrency exchange from Buy to Neutral on Monday, citing an uncertain regulatory environment, the stock of Coinbase Global fell 1.7%.
Analyst Peter Christiansen:
“Until the regulatory ‘rules of the road’ are better established in the U.S., the stock will remain weighed down by this high level of uncertainty,”
Following its legal conflict with the U.S. Securities and Exchange Commission, shares fell by almost 25% . The SEC staff advised taking enforcement action against COIN for allegedly breaking securities laws, the regulator warned COIN in a letter delivered to the business at the end of March. Despite this, COIN is still up 58.7% YTD amid a wider cryptocurrency uptrend.