Coinbase’s shares dropped with some 3.2% after it turned out that the American regulator Securities and Exchange Commission (SEC) intends to take an enforcement action against the crypto exchange over an interest-earning product that the exchange was planning to launch in the coming weeks.
Coinbase has apparently received a notice by SEC which prompted them to delay the launch of the product.
The product that caused the kerfuffle is called Lend and is, according to Coinbase, esigned to allow users to earn a 4% annual percentage yield on a stable coin called USD Coin. The exchange says that this could be done by lending clients’ funds to verified borrowers. SEC apparently intends to sue Coinbase over this.
Source
It is probably a good thing that SEC is so strict, considering how new cryptos and their related are to the mainstream market.
Coinbase has apparently received a notice by SEC which prompted them to delay the launch of the product.
The product that caused the kerfuffle is called Lend and is, according to Coinbase, esigned to allow users to earn a 4% annual percentage yield on a stable coin called USD Coin. The exchange says that this could be done by lending clients’ funds to verified borrowers. SEC apparently intends to sue Coinbase over this.
Source
It is probably a good thing that SEC is so strict, considering how new cryptos and their related are to the mainstream market.
