Citi downgrades Coinbase to Neutral on regulatory uncertainty

Citi downgraded Coinbase to Neutral from Buy with a price target of $65, down from $80. The analyst continues to believe that Coinbase is a category leader and one of the better positioned platforms should broader integration with traditional finance occur. However, Coinbase is now tasked to advocate for a "reputationally damaged industry and pave a sustainable pathway towards regulatory compliance," the analyst tells investors in a research note. Citi believes that until the regulatory "rules of the road" are better established in the U.S., the stock will remain "weighed down by this high level of uncertainty."