Analysts at Moody’s downgraded the corporate rating of American Coinbase Global shares to B2, and the rating of unsecured bonds to B1. Coinbase’s outlook has been changed from stable to negative.

The rating reassessment of the assets of the largest American cryptocurrency exchange followed immediately the filing of a lawsuit by the US Securities and Exchange Commission (SEC) dated June 6, 2023.

Moody’s explains that experts took into account the SEC’s statement and the allegation that Coinbase was acting as an unregistered securities broker, national securities exchange and clearing agency at the same time. And most importantly: it did not register the crypto asset staking program as a service with the SEC.

In addition, the downgrade of Coinbase was influenced by the fact that after the receipt of the SEC statement of claim, similar claims were sent to the exchange in violation of the provisions of the securities law by the regulatory authorities of several US states.

Moody’s said that the possible consequences of the regulators’ actions on Coinbase include the seizure of illegally obtained income, interest and penalties, as well as adverse effects on commercial activities, including staking rewards. Now Moody’s experts find it difficult to fully assess the timing and financial implications of solving these problems.

Bits.Media published an analysis of the causes and possible consequences of the legal confrontation between US regulators and the largest players in the digital asset sector Binance and Coinbase.