Popular cryptocurrency exchange Coinbase recently made it known that it shall be discontinuing its ‘Lend’ product following mounting pressure from the SEC. Coinbase had been forced to abandon any plans regarding the launch of such a product centred around cryptocurrency lending as the U.S SEC had declared that this would be a direct violation of the nation’s securities laws.
SEC wins, Coinbase loses
It had been via an updated blog post that Coinbase had made the abovementioned announcement, wherein it had been decided that the USDC (USD Coin) APY initiative was no longer going to be launched. The program’s waitlist had also been discontinued. Coinbase’s representatives had stated that although the decision to no longer have the launch of the program occur was understandably a very difficult one. It had to be taken nonetheless as the team continues to work towards seeking out further regulatory clarity pertaining to the cryptocurrency industry in general.
The post also mentioned that due to the launch’s abrupt cancellation and lack of any plans to continue it in the near future, the waitlist would also have to be discontinued as the team tries to figure out what to do next. It added that the interest expressed from countless customers based all over the country did not go unnoticed and that Coinbase is very thankful for this kind of support and hopes that it will continue. The goal thus remains the same, which is to provide trusted and innovative products as well as programs to the customers.
SEC not responding
The previously mentioned ‘Lend’ product had been proposed by Coinbase a few months ago in June, and the product itself was mainly focused on providing users with the chance to earn a maximum of 4% on specific cryptocurrency assets. Of course, this product was never released because the SEC had intervened.
Coinbase had therefore made it known that the SEC had threatened the exchange with a lawsuit should the plan to introduce the product be continued. As of now, the financial regulator has reportedly refused to comment on the issue and has not provided any kind of viable response regarding the decision to have the product be discontinued and why it is being considered as a security.
Coinbase’s staff and supporters are understandably quite upset at the whole development and are left wondering as to why the SEC is not responding. Even now, there has been no official statement from the agency regarding the decision to have the ‘Lend’ product be cancelled.