Oppenheimer’s Owen Lau pulled his outperform rating on Coinbase (COIN), downgrading to perform after the crypto exchange last night disclosed the receipt of a Wells notice from the U.S. Securities and Exchange Commission (SEC). Also noted by Lau was Tuesday’s Economic Report of the President, which was highly critical of the digital asset industry.

COIN shares are lower by 12.9% in premarket action.

With Coinbase stock up about 118% year-to-date versus a gain of around 3% for the S&P 500 stock index, Oppenheimer’s Lau said he is moving to the sidelines.

(By Will Canny)