Nasdaq-listed cryptocurrency exchange Coinbase has announced that it will no longer proceed with its plan to launch a Lending program amid a legal action threat from the US Securities and Exchange Commission (SEC).
The giant crypto exchange made the announcement last Friday, detailing that:
“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 not to launch the USDC APY program.”
Coinbase added that: “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 [and] trusted programs and products to our customers.”
Coinbase announced the Lend program in June, explaining that interested users could “earn interest on USD coin (USDC) with rates more than 50x the national average of a traditional savings account.” The program revealed that users could earn up to 4% APY with guaranteed security of principal.
In early September, the company received a Wells Notice regarding its Lend program from the SEC. Coinbase revealed that: “The SEC has told us it wants to sue us over Lend. We don’t know why,” adding that “The SEC told us they consider Lend to involve a security, but wouldn’t say why or how they’d reached that conclusion.”
Coinbase Continues to Excel Amid Setback
Amidst this setback, Coinbase continues to expand its service base. Last week, the giant crypto exchange applied with the National Futures Association (NFA) to offer futures and derivatives trading services on its platform.
Also, reports show that Coinbase recently initiated a $2 billion corporate bond program.
Furthermore, the largest cryptocurrency exchange in the US announced on September 20 that it was launching Coinbase Prime, a comprehensive platform for institutional investors.
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