Coinbase faces Moody's downgrade and SEC lawsuit while ARK invests in crypto and Base's smart contracts gain traction.

Moody's has downgraded Coinbase's rating from "stable" to "negative" due to concerns about the impact of the SEC's charges on the crypto exchange's day-to-day operations. Moody's noted that Coinbase maintains a "strong" liquidity position, but the uncertain magnitude of the SEC's charges on Coinbase's business model and cash flows led to the downgrade. Financial services firm Berenberg Capital also adjusted its outlook on Coinbase, slashing its price target for COIN shares from $55 to $39 and advising investors to hold off on pursuing any investment in Coinbase shares in the short term. ARK Invest CEO Cathie Wood, however, remains optimistic about Coinbase's future despite the regulatory scrutiny.