Coinbase dumps plans for crypto lending product following SEC notice By BTC Peers
Following an earlier warning from the SEC, Coinbase (NASDAQ:) has decided to shut down its crypto lending product.
The leading cryptocurrency exchange, Coinbase (NASDAQ:), announced in a blog post that it would not launch its USDC APY Program. Coinbase blamed regulators for not being clear enough to justify their decision.
Thousands of people have signed up for the Coinbase product since June when it was announced. This program is supposed to pay 4% per annum on USD Coin (USDC deposits).
This program suspension is less than two weeks following a threat by the US SEC to Coinbase that it would launch the Lend Program.
Chief legal officer at the exchange, Paul Grewal, later opined that the lending product was not an “investment contract or a note.” He also questioned the SEC’s decision saying it lacked clarification.
Initial statements by the cryptocurrency trading platform stated that Lend would launch in October. It is unclear whether the product will ever be relaunched.
Coinbase, which has a daily volume of $6.3 Billion, is one of the top crypto exchanges worldwide. Earlier this month, the exchange announced plans to raise $1.5 billion in a debt offering to grow the company’s balance sheet.
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