The rating reassessment of the assets of the largest U.S. cryptocurrency exchange followed immediately after the filing of a
SEC lawsuit on June 6, 2023.
Moody’s explains that the examiners took into account the SEC filing and the allegation that Coinbase was acting as an unregistered securities broker, a national securities exchange and a clearing agency at the same time.
In addition, Coinbase’s downgrade was impacted by the fact that following the SEC s filing, the exchange was subject to similar claims of securities law violations by regulatory agencies in several U.S. states.
Moody’s said the potential consequences of the regulatory actions for Coinbase include the forfeiture of illegally obtained proceeds, interest and penalties, and adverse business consequences, including staking fees. Now Moody’s experts find it difficult to fully assess the timing and financial implications of the solution to these problems.
Bits.Media has published a
a breakdown of the causes and possible consequences of the legal confrontation between U.S. regulators and the biggest players in the digital asset sector, Binance and Coinbase.