Moody's Downgrades Coinbase's Outlook to Negative

International credit rating agency Moody's announced that Coinbase, which was sued by the U.S. Securities and Exchange Commission (SEC), has changed its outlook to negative. In a statement from Moody's, it was stated that Coinbase's outlook was changed from stable to negative, and that the rating action in question came after various accusations made by the SEC against the company. In the statement, it was emphasized that the change in Coinbase's outlook reflects the uncertainty of the impact of the SEC's accusations on the company's business model and cash flow. It was stated in the statement that the effects of possible regulatory actions that Coinbase may face may have negative consequences on certain products and activities of the company, and that the timing and financial results regarding the resolution of these issues are uncertain. The SEC announced that it had filed a lawsuit against cryptocurrency exchange Binance at the beginning of the week and against Coinbase on Tuesday for various securities law violations. Cryptocurrency exchange Coinbase announced that they had received a "Wells notice" from the SEC in March, including plans to sue them. Coinbase CEO Brian Armstrong emphasized that they acted lawfully and relied on the facts, and said they welcomed the opportunity to appear in court.