Coinbase calls out SEC after threat to sue over cryptocurrency lending product

Coinbase Blame the US Securities and Exchange Commission late Tuesday Cryptocurrency exchange I was warned by regulatory agencies about future lending programs.so A series of tweets, CEO Brian Armstrong accused the SEC of “really sketchy behavior” and “creating an unfair market.”

Coinbase is a blog post on Tuesday Received Wells Notice from SEC, Shows the regulatory agency’s intention to bring the company to court. The crypto exchange had been with the SEC for six months on its loaned product before receiving last week’s notice, Chief Legal Officer Paul Grewal said in a company blog post. He added that the SEC refused to share concerns or legal assessments of the lending program.

“All we know is that we can either keep Lend out of the market indefinitely for no reason, or we can be sued,” Grewar said. “Sound regulatory relationships should not put the industry in such a bond without explanation.”

According to the company, the Lend program will allow some customers to “start with a 4% APY of USD Coin (USDC) and earn interest on certain Coinbase assets.” Coinbase Announcement of rental plan In June, we will allow customers to pre-register for the program. The SEC seems to have told Coinbase that Lend considers it to include securities, but the company has not.

US regulators are reportedly beginning to raise concerns about programs that allow people to lend cryptocurrencies in return for interest, saying they need to comply with securities law. July, New Jersey ordered Cryptographic platform BlockFi to stop offering interest-bearing accounts, Reuters reported.

Coinbase plans to postpone the launch of Lend products until at least October.

A SEC spokesperson said he did not comment on “possible investigations.”