Oppenheimer has lowered its rating on Coinbase Global, Inc. (NASDAQ:COIN) from Outperform to Perform because of recent events. These developments consist of the SEC's Wells Notice and the Economic Report of the President's unfavorable assessment of the digital asset sector. As a result, the company’s shares dropped more than 14% yesterday.

The analysts expressed concerns about blockchain development in the US after the failure of three banks and these actions from authorities suggest their negative attitude towards the industry. Despite their support for digital asset development in the US, the analysts are concerned about the fairness of enforcement actions and the limited support from the US banking system in the current regulatory climate.

Coinbase has not received clear information from the SEC regarding which products are being targeted and on what grounds. They believe it may be related to spot market, staking/Earn, Prime, and Wallet. Coinbase has met with the SEC over 30 times in the past nine months, but has not received any feedback on how to register or what changes to make.