Coinbase Faced With Too Much Regulatory Uncertainty, Rating Cut to Neutral: Citi

The bank slashed its price target for the crypto exchange to $65 from $80.

AccessTimeIconMay 2, 2023 at 12:38 p.m. UTC
Updated May 9, 2023 at 4:13 a.m. UTC

Coinbase (COIN) will remain weighed down by high levels of uncertainty until crypto regulations are better established in the U.S., Wall Street giant Citi (C) said in a research report on Monday.

The bank cut its rating on the exchange's stock from buy to neutral and cut its price target to $65 from $80. Coinbase shares dropped 1.2% to $49.54 in premarket trading.

“Coinbase’s notions of redomiciling outside of the U.S., the company’s public responses and now a formal suit against the [Securities and Exchange Commission] are indicative that the [Wells Notice's] process has not (yet?) been productive,” analysts led by Peter Chistiansen wrote.

“The failure of Signature Bank and whether it was crypto related along with other events of the past year are all fodder for the SEC,” the analysts wrote.

Citi says that Coinbase remains a category leader and “one of the better positioned platforms should broader integration with traditional finance occur,” but the exchange is now being “tasked to advocate for a reputationally damaged industry and pave a sustainable pathway towards regulatory compliance.”

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image

Will Canny is CoinDesk's finance reporter.