DA Davidson downgrades Coinbase with SEC ‘more combative’ on crypto

DA Davidson analyst Christopher Brendler downgraded Coinbase to Neutral from Buy with a price target of $60, up from $55. The stock has nearly doubled year-to-date “yet risks are still increasing,” the analyst tells investors in a research note. The firm says that in just the last week, the Securities and Exchange Commission has targeted three of Coinbase’s business lines – stablecoins, staking, custody – at competitors Paxos and Kraken. While Coinbase is the long term winner, the SEC is “clearly taking a more combative stance on crypto,” contends DA Davidson. The firm now prefers the risk/reward in shares of Riot Blockchain (RIOT) over Coinbase.