Following SEC discover, Coinbase abandons plan for crypto lending program
U.S.-based cryptocurrency exchange Coinbase has introduced it won’t be pursuing its Lend crypto lending program.
In a Sept. 17 update to a weblog saying this system in June, Coinbase hinted at difficulties in regulatory readability throughout the crypto trade in its determination to not convey the crypto lending product to the market. According to the exchange, “hundreds of thousands of customers from across the country” had already signed up for Lend, a program which aimed toward providing 4% annual yield returns on deposits of USD Coin (USDC).
The announcement comes lower than two weeks after the Securities and Exchange Commission, or SEC, threatened Coinbase with authorized motion if the exchange launched Lend, which it has deemed a safety below its purview. Coinbase chief authorized officer Paul Grewal later claimed the lending product was not an “investment contract or a note” and questioned the SEC’s determination as missing clarification. At the time, the exchange stated it will be pushing the launch of Lend “until at least October.”
Related: Regulatory and privateness considerations path SEC’s risk to Coinbase
Coinbase continues to be one of many largest crypto exchanges within the U.S. and the world with greater than $6.3 billion in every day buying and selling quantity in keeping with CoinMarketCap. This month, the exchange additionally introduced plans to lift $1.5 billion in a debt providing to additional develop the corporate’s steadiness sheet.