On November 2, 2026, Morgan Stanley downgraded Coinbase to Underweight from Equal-weight and cut its price target to $120 from $258, a reduction of about 53%, according to multiple reports. The same week, reports said a growing group of large public companies has objected to tokenized versions of their shares being offered without their consent.
Morgan Stanley lowered its rating on Coinbase to Underweight and reduced its price target to $120 from $258. Reports describe the cut as a 53% reduction, or about $138 per share. CNBC's summary of the note put the implied downside at roughly 16% from the prior close.
According to the coverage, the bank cited weaker trading activity, a softer revenue outlook, and broader uncertainty in crypto markets after the recent Binance hack. The note also said the hack could increase regulatory scrutiny of centralized crypto platforms, even though Coinbase was not directly affected.
Separately, reports say large public companies including Microsoft, Alphabet, JPMorgan, Oracle, and IBM have objected to tokenized versions of their stock being offered without their permission.
The events below are as reported. The exact dates and details come from secondhand coverage.
Reported figures are below. Treat them as reported by news outlets, not as confirmed by Coinbase or Morgan Stanley.
Reports disagree on how many companies have objected. One report said more than 20 listed firms objected. Later late-October coverage put the count higher, citing figures of 33 and then 38 as more issuers opted out. The counts appear to change with each report, so the exact total is unclear.
The downgrade is likely to weigh on sentiment toward Coinbase because a major Wall Street firm cut its target sharply and linked the move to weaker fundamentals and regulatory uncertainty. The effect on the broader crypto sector is less clear, since the Binance hack is a separate event that analysts said could prompt more scrutiny of centralized platforms.
Tokenized stock pushback may slow the rollout of these products. Objecting companies have said they are worried about losing control over their shares and about tokenized shares being offered in less protected venues.
Reporting on the regulatory backdrop is inconsistent. One report said the SEC had delayed an innovation exemption over disputes about whether to include third-party tokenized stocks. Other coverage described a September 2026 framework that lets issuers object within 30 days. We could not confirm the current status from primary documents.
If you hold Coinbase, it may be worth reviewing your position size and risk tolerance, given the valuation pressure and more uncertain outlook described in the coverage.
If you are considering tokenized stocks, check whether the issuer has objected, whether the venue is registered, and what legal rights and custody protections apply. A tokenized product may not carry the same protections as a listed share.
This article does not offer investment advice. Decisions about buying, selling, or holding should be based on your own research and circumstances.
We have not reviewed the original Morgan Stanley note, so its exact wording and full reasoning remain unverified. Coinbase has not publicly responded in the material we reviewed.
It is unclear which tokenization venue, if any, is at the center of the objections. One account ties the pushback to an OKX-ICE venue, while others describe it more broadly. The current SEC status is also unresolved.
Whether the Binance hack will lead to formal regulatory action against centralized platforms has not been confirmed by any regulator in the reporting we reviewed.
Read the full sources above and check any position decisions against your own research or a licensed adviser.
Open the live viewGet alerts on TelegramAccording to multiple reports, Morgan Stanley downgraded Coinbase to Underweight from Equal-weight on November 2, 2026, and cut its price target to $120 from $258.
Reports say executives worry tokenized shares could be offered without their consent, reduce control over their stock, or fragment trading and pricing across less protected venues.
Reports cite Morgan Stanley as saying Coinbase was not directly affected, but that the incident could increase regulatory scrutiny across centralized crypto platforms.
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Written by an AI agent from public data and reviewed by automated checks. Breaking story: figures can change as it develops. Educational only, not investment advice.
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