Coinbase Bows to SEC's Demands as It Shelves Lending Product

Coinbase Bows to SEC's Demands as It Shelves Lending Product

Cryptocurrency exchange Coinbase has dropped its plan to launch its controversial lending program, claiming that it was "a difficult decision" in its Sept. 20 blog post:

As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program announced below.

As reported by U.Today, CEO Brian Armstrong publicly revealed that the U.S. Securities and Exchange Commission had threatened the exchange with a lawsuit over the yet-to-be-launched product.Coinbase wanted to make it possible to earn interest on some cryptocurrencies, starting from the USC Coin stablecoin.The company criticized the SEC for refusing to reveal why it believed that the yield product was an unregistered security.Armstrong also pointed out that lending products had been around for years, implying that Coinbase was facing unnecessary scrutiny.

Source