Coinbase faces SEC enforcement action despite request for clarity.

Berenberg has initiated coverage of Coinbase with a hold rating and a price target of $55, stating that the Securities and Exchange Commission (SEC) will soon bring enforcement action against the crypto exchange. The action is likely to mirror those brought against rival exchanges Bittrex and Kraken. Berenberg estimates that at least 37% of Coinbase's Q1 net revenue came from transaction fees and spreads from trading crypto tokens other than bitcoin, which may be targeted by the SEC. Shorting Coinbase shares is too risky, Berenberg said, as around 23% of its free float is already sold short.