Following SEC notice, Coinbase abandons plan for crypto lending program
The exchange hinted at difficulties in regulatory clarity across the crypto industry in its decision to not bring its Lend product to the market. U.S.-based cryptocurrency exchange Coinbase has announced it will not be pursuing its Lend crypto lending program.In a Sept. 17 update to a blog announcing the program in June, Coinbase hinted at difficulties in regulatory clarity across the crypto industry in its decision to not bring the crypto lending product to the market. According to the exchange, “hundreds of thousands of customers from across the country” had already signed up for Lend, a....
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The Nasdaq-listed cryptocurrency exchange 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 announced Friday that it has decided not to launch the Lend program. The exchange wrote:
Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world. As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision....
The SEC’s notice to Coinbase over its Lend product might indicate incoming federal regulations aimed at crypto lending. Crypto lending products have come under scrutiny from security regulators in some jurisdictions across the United States. While these enforcement actions have come from agencies at the state level, there have been indications that the Securities and Exchange Commission (SEC) was also set to go on the offensive.Thus, it was perhaps unsurprising to see the SEC ask Coinbase to halt its proposed crypto lending program titled “Lend.” Coinbase CEO Brian Armstrong took to....
The U.S. Securities and Exchange Commission (SEC) has threatened to sue the Nasdaq-listed cryptocurrency exchange Coinbase over its lending product. The exchange says, “We don’t know why … We got no explanation from the SEC.” Coinbase Threatened by SEC Coinbase revealed Tuesday that it received a Wells notice from the SEC last Wednesday about its planned Lend program. A Wells notice is the official way a regulator tells a company it intends to sue the company in court. In a blog post titled “The SEC has told us it wants to sue us over Lend. We....
Coinbase announced a $1.5 billion bond sale shortly after the SEC threatened to sue the firm over its lending program. Coinbase, the largest cryptocurrency exchange in the United States, is planning to raise $1.5 billion via a debt offering, the company officially announced Sept. 13.The Nasdaq-listed crypto exchange is looking to use the capital raised to further grow the company’s balance sheet for general corporate purposes as well as potential investments and acquisitions of other companies, products or technology, Coinbase said.The news comes amid Coinbase facing increased attention....
"They refuse to tell us why they think it's a security, and instead subpoena a bunch of records from us,” said Brian Armstrong after he revealed that the SEC threatened to sue Coinbase. The United States Securities and Exchange Commission (SEC) has reportedly threatened to sue Coinbase over a crypto yield program it deems as a security.Coinbase CEO Brian Armstrong tweeted on Sept. 8 that has been some “really sketchy behavior coming out of the SEC recently” before launching into a 21 post thread detailing the SEC’s dealings with the firm. Armstrong explained that the crypto exchange....