SEC forces Coinbase to cancel Lend product launch
The SEC is threatening crypto exchange Coinbase with legal action if the company launches its crypto lending product called Lend. The feature would make it possible to lock up the USDC stablecoin and earn at least 4% per annum.
Over the weekend, the company announced its decision not to launch Lend.
The SEC believes that the product is a security and its launch must be done in accordance with the law.
On the Coinbase blog, it says:
The Securities and Exchange Commission told us that they are considering Lend as a bond of the company... None We have not received any explanation from the SEC. Instead, they launched a formal investigation.
The regulator continues to pursue legal action against 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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