The Nasdaq-listed cryptocurrency trade Coinbase has dropped its plan to launch a lending program after the U.S. Securities and Exchange Commission (SEC) threatened to sue the company.
Coinbase Will Not Launch Lending Program
Coinbase introduced Friday that it has determined not to launch the Lend program. The trade wrote:
Our objective is to create nice merchandise for our clients and to advance our mission to enhance financial freedom on the planet. As we proceed our work to search regulatory readability for the crypto business as a complete, we’ve made the tough determination not to launch the USDC APY program.
“We have also discontinued the waitlist for this program as we turn our work to what comes next. We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programs and products to our customers,” Coinbase added.
Coinbase unveiled the Lend program in June the place customers may “earn interest on USD coin (USDC) with rates more than 50x the national average of a traditional savings account,” the company defined on the time. The program marketed that customers may earn 4% APY and the “principal is guaranteed.”
However, Coinbase revealed in early September that the SEC despatched the company a Wells Notice concerning its Lend program. “The SEC has told us it wants to sue us over Lend. We don’t know why,” the trade stated. “The SEC told us they consider Lend to involve a security, but wouldn’t say why or how they’d reached that conclusion.”
Meanwhile, Coinbase is rising its business in another methods. Last week, the company filed an application with the National Futures Association (NFA) to provide futures and derivatives buying and selling on its platform. Coinbase can also be elevating $2 billion by promoting bonds. Furthermore, the trade announced Monday that Coinbase Prime, a complete platform for institutional buyers, is launching with up to date capabilities.
What do you consider Coinbase abandoning its plan to launch a lending program? Let us know within the feedback part under.
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