Citi Bank believes buying Coinbase shares is not safe
Popular Investment Bank confirmed that it will not give better focus on the crypto platform Coinbase citing an unclear regulatory environment in the US jurisdiction.
Coinbase is a US-based crypto company. This company is most reputed & regulated in the US jurisdiction. The services of this crypto firm are available for retail as well as for institutional crypto investors. In late March of this year, this crypto firm received a Wells notice from the United States Securities and Exchange Commission (SEC) over a potential violation of securities laws.
On 1 May 2023, Investment bank Citi downgraded Coinbase (COIN) shares from “Buy” to “Neutral” and also lowered its price target. In short, Citi analysts believe that it will not be better to go with the COIN share investment because of the struggling phase of this company.
The investment bank pointed out that the crypto regulation system under the jurisdiction of the United States is not clear, so it is obvious that Coinbase shares will struggle significantly until US lawmakers will bring a proper & clear regulatory framework.
Peter Christiansen, the analyst at CitiBank, said that Coinbase stock will remain in a struggling phase & also huge uncertainty will occur, so here we have to wait for regulatory clarity.
Coinbase vs SEC
On 23 March, Coinbase received Wells notice from the SEC but so far the exchange is away from any kind of enforcement action or legal charge. People believe that any time the SEC agency may announce charges against Coinbase, just like in the XRP lawsuit.
Just a few days ago, Coinbase CEO Brian Armstrong & Coinbase Chief Legal Officer Paul Grewal talked about the SEC’s Wells notice and said that legal notice by the SEC body was unnecessary because there is no clear law or regulation system on this sector but confirmed that exchange will remain focussed to remain in compliance with the all existing traditional regulation system.
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