• Coinbase has received a Wells Notice from the SEC, implying that charges may be coming in the near future.
• Analysts at Key Banc have expressed their concerns about the regulatory climate in the U.S., and suggested that other crypto firms may suffer too.
• Shares in Coinbase dropped by more than 16 percent following news of the notice.
Coinbase Receives Wells Notice from SEC
Coinbase recently received a Wells notice from the Securities and Exchange Commission (SEC), indicating that charges may be coming at some point in the not-so-distant future.
Regulatory Climate Causes Concerns
Analysts at Key Banc have expressed concern about how this could affect the regulatory climate in the U.S., suggesting that other crypto firms could suffer too if action is taken against Coinbase.
Shares Drop Following News
Following news of Coinbase receiving a Wells Notice, shares dropped by more than 16 percent due to investor concerns over potential consequences.
This news comes on top of ongoing litigation between Coinbase and its customers, which is currently being examined by Supreme Court of United States.
Outlook for Crypto Industry Uncertain
With increasing scrutiny from regulators, analysts are warning that upside opportunities and downside risk for companies operating within the cryptocurrency space have both increased substantially, making it difficult to predict what outcome awaits this industry in future.