Moody’s downgrades Coinbase outlook

Coinbase, a cryptocurrency exchange, has had its rating lowered by Moody’s after the US regulators presented a lawsuit against it earlier this week. In a statement on Thursday, the rating agency downgraded the rating outlook from “stable” to “negative,” citing concerns about how the lawsuit could affect the firm’s business model and cash flows.

On Tuesday, the Securities and Exchange Commission (SEC) sued Coinbase, alleging that the platform violated US law by not registering as an exchange. This move was part of a wider crackdown on the cryptocurrency industry, which SEC Chairman Gary Gensler likened to the “Wild West.” On Monday, the SEC also took legal action against Binance, the world’s largest cryptocurrency exchange.