WebsCryptoWebsCrypto
  • News
  • Prices
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Opinions
  • Guides
  • PR
  • Sponsored
WebsCryptoWebsCrypto
Advertise
  • News
  • Prices
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Opinions
  • Guides
  • PR
  • Sponsored
WebsCryptoWebsCrypto
WebsCrypto—News—Business News—SEC May Take Enforcement Action Against Coinbase
Business News

SEC May Take Enforcement Action Against Coinbase

By Simon LawsonJanuary 8, 2023
SEC May Take Enforcement Action Against Coinbase
Facebook Twitter Telegram LinkedIn Reddit WhatsApp Email

On January 8th, analysts at Cowen downgraded their rating on Coinbase from outperform to equal to the market, citing low visibility of retail transaction volume in 2023 and the possibility of enforcement actions from the US Securities and Exchange Commission (SEC). The target price for Coinbase was also lowered by more than 50% to $36.

According to the analysts, the downgrade is driven primarily by two factors: the uncertain outlook for Coinbase’s retail transaction volume in the coming year, and the risk of enforcement action from the SEC. The analysts noted that the SEC may take action against trading platforms like Coinbase before SEC Chairman Gary Gensler appears before Congress at the end of the first quarter.

One concern for the analysts is the potential for regulators to treat Coinbase’s non-BTC/ETH trades (which account for 36% of the platform’s activity) and custody assets (31% of its activity) as securities, which could further decrease transaction volume. In light of these risks, the analysts believe Coinbase may be forced to significantly reduce its staff again in early 2023.

Despite these concerns, the analysts at Cowen still believe that Coinbase has sufficient capital to expand its product offerings in the coming years. However, they also noted that there is a risk that Coinbase may not be able to effectively lay off staff or cut costs in early 2023.

Overall, the downgrade and lowered target price for Coinbase reflect the company’s declining turnover and adjusted EBITDA in 2023, as well as the risks associated with potential SEC enforcement action and the uncertain outlook for retail transaction volume. It remains to be seen how Coinbase will navigate these challenges in the coming year.

DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.
Related News
Retail Giant Pick n Pay Goes All-In on Bitcoin, Adopts Cryptocurrency in All 1,628 Stores
Business News February 2, 2023

Retail Giant Pick n Pay Goes All-In on Bitcoin, Adopts Cryptocurrency in All 1,628 Stores

Australian Regulator Warns Against FTX Exchange Eight Months Before Its Collapse
Business News January 31, 2023

Australian Regulator Warns Against FTX Exchange Eight Months Before Its Collapse

Bulgarian Prosecutors Deny Political Motivation in Nexo Investigation, Independent Auditor to Conduct Review
Business News January 29, 2023

Bulgarian Prosecutors Deny Political Motivation in Nexo Investigation, Independent Auditor to Conduct Review

Bitcoin Monetary Economist: Circle Is Ceding Some Control of Its USDC Reserves to SEC-Regulated Outside Managers
Business News January 9, 2023

Bitcoin Monetary Economist: Circle Is Ceding Some Control of Its USDC Reserves to SEC-Regulated Outside Managers

Mexican Central Bank Digital Currency Unlikely to Launch by 2024
Market News January 9, 2023

Mexican Central Bank Digital Currency Unlikely to Launch by 2024

Bankman-Fried Fights for Control of $460 Million Robinhood Shares, Claiming They're Necessary for Criminal Defense
Business News January 9, 2023

Bankman-Fried Fights for Control of $460 Million Robinhood Shares, Claiming They’re Necessary for Criminal Defense

The Latest
Retail Giant Pick n Pay Goes All-In on Bitcoin, Adopts Cryptocurrency in All 1,628 Stores
Business News February 2, 2023
Retail Giant Pick n Pay Goes All-In on Bitcoin, Adopts Cryptocurrency in All 1,628 Stores
Supreme Court To Decide on Panamanian Crypto Bill After Congressional Rejection
Market News February 1, 2023
Supreme Court To Decide on Panamanian Crypto Bill After Congressional Rejection
The Fair Market Value of Bitcoin Held by Tesla in 2022 Is $191 Million, and the Impairment Loss Is $204 Million
Bitcoin News February 1, 2023
The Fair Market Value of Bitcoin Held by Tesla in 2022 Is $191 Million, and the Impairment Loss Is $204 Million
Bitcoin Surges to New Highs, Best January in a Decade
Bitcoin News February 1, 2023
Bitcoin Surges to New Highs, Best January in a Decade
Hermes vs MetaBirkin: Trademark Dispute Over NFT Art Headed to Court in NYC
NFT News January 31, 2023
Hermes vs MetaBirkin: Trademark Dispute Over NFT Art Headed to Court in NYC

WebsCrypto contains crypto news about cryptocurrencies, bitcoin, ethereum, altcoins and more.

Facebook Twitter Instagram LinkedIn Telegram RSS
News
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Market News
  • Business News
Information
  • Opinions
  • Guides
  • Press Release
  • Sponsored
Services
  • About Us
  • Contact Us
  • Advertise
© 2023 WebsCrypto.
  • Privacy Policy
  • Terms of Service

Type above and press Enter to search. Press Esc to cancel.