The consequences of the complaint filed by the Securities and Exchange Commission (SEC) against Coinbase are already being felt in the cryptocurrency industry: Moody’s, the American rating agency, is changing the company’s rating from “stable” to ” negative”. Does this presage investor disinterest in the world’s second largest cryptocurrency exchange?
Coinbase goes from “stable” to “negative”
After the complaint filed earlier in the week by the Securities and Exchange Commission (SEC), the company Moody’s has changed its future outlook on the company Coinbase. Thus, the company headed by Brian Armstrong sees its rating deteriorate from “stable” to “negative”.
The American agency specializing in corporate ratings justifies this change by the lawsuits undertaken by the SEC. When Gary Gensler’s institution said Coinbase allegedly violated movable asset laws, investor panic rippled through its stock price, which plummeted about 20%.
In an article published on its site, Moody’s adds that the regulations in force could cause the cryptocurrency exchange to receive financial penalties. These sanctions could have a significant impact on the firm’s finances:
” The change in outlook from stable to negative reflects the uncertain extent of the impact the SEC charges will have on Coinbase’s business model and cash flow »
Note that Moody’s did not alter Coinbase’s long-term credit rating. For the moment, the company has remained at the B2 level since January 2023a rating deeming the company to be of high credit risk.
Coinbase isn’t the only company under attack from the SEC. After receiving a complaint from the American regulator, the Binance company was forced to suspend dollar withdrawals and deposits on its Binance.US subsidiary.
👉 Binance.US Suspends Dollar Deposits and Set to Halt Fiat Withdrawals on June 13
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