- Credit rating agency Moody’s Investor Service has downgraded its rating for Coinbase following the SEC’s lawsuit against the cryptocurrency exchange, changing it from “stable” to “negative” in the wake of charges that it has been operating as an unregistered securities broker.
Moody’s warned that the regulatory actions could result in the disgorgement of ill-gotten gains, interest and penalties, and negative consequences for certain product offerings and business activities, including its crypto asset staking-as-a-service program. Moody's noted that interest revenue was actually a positive area for the exchange, because it rose as the Federal Reserve raised interest rates.
Developments that could lead to a further downgrade include “an accelerated decline in the company's liquidity position, including through incurring significant regulatory penalties; a strategic or mandated revamp of its business model, leading to lower revenue or increased costs and a failure to return to relatively healthy free cash flow generation; a further substantial and sustained reduction in trading revenue; or a reduction in interest rate levels negatively impacting the...
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: globeandmail - 🏆 5. / 92 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »