Fun

Coinbase Abandons Plan to Launch Lend Program After SEC Threatens Lawsuit

News Feed - 2021-09-22 12:09:55

Coinbase Abandons Plan to Launch Lend Program After SEC Threatens Lawsuit


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 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 where users could “earn interest on USD coin (USDC) with rates more than 50x the national average of a traditional savings account,” the company explained at the time. The program advertised that users could earn 4% APY and the “principal is guaranteed.”


However, Coinbase revealed in early September that the SEC sent the company a Wells Notice regarding its Lend program. “The SEC has told us it wants to sue us over Lend. We don’t know why,” the exchange said. “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 growing its business in some other ways. Last week, the company filed an application with the National Futures Association (NFA) to offer futures and derivatives trading on its platform. Coinbase is also raising $2 billion by selling bonds. Furthermore, the exchange announced Monday that Coinbase Prime, a comprehensive platform for institutional investors, is launching with updated capabilities.


What do you think about Coinbase abandoning its plan to launch a lending program? Let us know in the comments section below. US Authorities Investigate Binance for Insider Trading and Market Manipulation: Report EXCHANGES | 3 days ago Paypal Completes Rollout of Crypto Offering in UK: First International Expansion Outside US EXCHANGES | 3 days ago Tags in this story Coinbase, coinbase exchange, coinbase lend, coinbase lending, coinbase sec, sec threatens coinbase, wells notice


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Tom Mitchelhill8 hours agoBlackRock’s iShares Bitcoin ETF mysteriously disappears from — then reappears on — DTCC siteBlackRock’s Bitcoin ETF listing staged a sudden reappearance on the DTCC’s website after dis
David Attlee3 hours agoCrypto futures and ETFs are knocking at the door: Law Decoded, Aug. 13–20.SEC is likely to approve multiple applications for Ether futures exchange-traded funds simultaneously.563 Total views6 To
Federal Reserve Hikes Benchmark Bank Rate by 75bps to Battle Elevated Inflation
Federal Reserve Hikes Benchmark Bank Rate by 75bps to Battle Elevated Inflation The U.S. Federal Reserve raised the federal funds rate on Wednesday afternoon by three-quarters of a
Amaka Nwaokocha11 hours agoManta Network developer raises $25M in Series A, launches layer 2 for ZK appsThe funds will be utilized to expand the network, attract more users and explore diverse use cases for Manta Pacific
Economist Peter Schiff Predicts Inflation ‘About to Get Much Worse’ — US Dollar Facing ‘One of Its Worst Years Ever’
Economist Peter Schiff Predicts Inflation "About to Get Much Worse" — US Dollar Facing "One of Its Worst Years Ever" Economist Peter Schiff has predicted that the U.S. dollar wil
Nigeria’s government is blaming Binance for its own mismanagement
Nicholas Anthony7 hours agoNigeria’s government is blaming Binance for its own mismanagementNigeria"s currency is collapsing because of financial mismanagement. Now, two Binance employees have been entangled in the gov
Messari Founder Ryan Selkis Announces Senate Run for 2024 — ‘Enough Talk’
Messari Founder Ryan Selkis Announces Senate Run for 2024 — "Enough Talk" Ryan Selkis, the founder of Messari, a cryptocurrency research company, has announced he will be running
PS4 Hits 30 Million US Units Sold, Makes Sony Next Gen’s Console-to-Beat
Sony"s PlayStation 4 console has all but won this generation of console wars, selling 30 million units in the United States alone. | Source: AFP PHOTO / JOEL SAWSony’s PlaySta
South African Cryptocurrency Ownership Rate at 10% — Report
South African Cryptocurrency Ownership Rate at 10% — Report With a cryptocurrency ownership rate of 10%, or four million people, South Africa “ranks 18th out of 26 countri
Bitcoin Runes racks up over 2,500 BTC in fees under 2 months
Zoltan Vardai10 hours agoBitcoin Runes racks up over 2,500 BTC in fees under 2 monthsRunes-related transactions could extend a significant revenue boost for Bitcoin miners after the 2024 halving.2609 Total views2 Total s
Unizen hacker transfers $2.1M stolen funds to Tornado Cash
Josh O"Sullivan36 minutes agoUnizen hacker transfers $2.1M stolen funds to Tornado CashThe hacker’s use of Tornado Cash marks the first movement of the stolen Unizen funds since March, heightening security concerns.184
Crypto exchange BitForex halts withdrawals, stops responding to users
David Attlee13 hours agoCrypto exchange BitForex halts withdrawals, stops responding to usersA Hong Kong-based crypto exchange has suspended withdrawals for at least three days without warning.10493 Total views14 Total s