Analysts are split on how Coinbase shares perform from here as the company enters a battle with the Securities and Exchange Commission. On Tuesday, the SEC sued the crypto services provider , alleging that it's been operating as an unregistered exchange, broker and clearing agency. The regulator also said that Coinbase's staking program violates securities laws, and that at least 13 crypto assets listed on the site are considered securities, according to the complaint.
mountain Coinbase shares after the SEC sued the company Tuesday "In a simplified analysis, a 40% reduction in retail transaction fees and 100% reduction in staking revenue would result in Coinbase's total revenue falling 25-30% and drive Coinbase to be substantially unprofitable," Raymond James' Patrick O'Shaughnessy wrote. SVB MoffettNathanson also sees 25% to 30% of revenue at risk.