the securities and exchange commission sec is expected to launch regulatory action against coinbase global inc coin soon according to a research report from berenberg its a move that might resemble previous actions against competing cryptocurrency exchanges such as bittrex and kraken berenberg initiated its coverage of the stock with a hold rating and a price target of 55 berenbergs report suggests that a significant portion of coinbase’s revenue could be under threat coindesk reported around 37 of the companys firstquarter net revenue of 736 million was derived from transaction fees and spreads related to trading cryptocurrencies besides bitcoin btcusd as well as staking service fees mark palmer an analyst at berenberg commented that at a minimum these revenue sources likely would be targeted by the sec in the enforcement action that we anticipate the commission to file soon he further suggested that other revenue streams for coinbase such as interest income from usd coin usdcusd and custody could also face regulatory scrutiny from the sec however shifting its business focus away from the us could be a challenging task for coinbase given that approximately 86 of its net revenue over the 12 months ending march 31 was generated from its us operations the report states as far as investment strategies are concerned berenberg advises against shorting coinbase shares considering it a risky trade the report highlights that about 23 of the companys free float is already sold short short selling is a speculative strategy where an investor borrows a security and sells it hoping for a price decline so they can buy it back at a lower price return it to the lender and pocket the difference earlier this month banking behemoth citigroup downgraded its rating on coinbase from a buy to neutral and reduced its price target from 80 to 65 also due to concerns over regulatory uncertainties price check shares of coinbase were trading 145 lower on tuesday at 5989 at the time of publication read next bitcoin and ethereum break up the crypto love story ends