Moody's has revised its outlook on Coinbase from stable to negative following the recent lawsuit by the US Securities and Exchange Commission.

The ratings agency affirmed the company's B2 corporate family rating and B1 guaranteed senior unsecured notes' ratings but expressed uncertainty about the impact of the charges on Coinbase's business model and cash flows.

The regulatory actions against Coinbase could result in penalties, disgorgement of ill-gotten gains, and adverse consequences to certain product offerings and business activities. Despite this, Moody's noted that Coinbase has a strong liquidity position with $5 billion in cash and equivalents and expects the company to focus on expense management to mitigate the decline in transaction revenue.