SEC forced Coinbase to cancel Lend product launch
SEC threatens crypto exchange Coinbase with legal action if the companywill launch its crypto lending product called Lend. The function would make it possible to block the USDC stablecoin and earn from 4% per annum.
Last weekend, the company announced its decision not to launch Lend.
The SEC believes that the product is classified as securities and should be launched in accordance with the law.
The Coinbase blog states:
The Securities and Exchange Commission informed us that they consider Lend as a bond of the company ... We have not received any explanation from the SEC. Instead, they launched an official investigation.
The regulator continues to initiate legal proceedingsagainst crypto companies. Crypto lending platforms in the US, including BlockFi and Celsius, are receiving requests from state regulators to provide evidence that their products are not securities.
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