Coinbase Falls 6% as it Shelves Plan to Launch Crypto Lending Business By Investing.com
By Dhirendra Tripathi
Investing.com – Coinbase stock (NASDAQ:) recouped some losses but still traded 6% lower Monday after the platform succumbed to pressure from regulators and dropped plans to launch a crypto lending business.
In a blog post, the company revealed its decision.
The Securities and Exchange Commission threatened to sue the company for its plans to allow users to earn interest through lending cryptocurrency assets.
This came to light when early this month, the crypto exchange’s Co-founder and Chief Executive Officer Brian Armstrong, took on the markets regulator publicly.
“If you don’t want this activity, then simply publish your position, in writing, and enforce it evenly across the industry,” Armstrong tweeted on September 8 while pointing out that plenty of other crypto companies continue to offer the lending feature.
The regulator failed to give any direction on the products, he complained. It even threatened to bring it to court.
Coinbase’s weakness was further exacerbated by the slump in cryptocurrency prices today. ()The market-cap largest crypto, just below $44,000, lost more than 7%. It recovered some of its losses from the earlier day’s drop to 42 547.1.
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