The company says it is still looking for “regulatory clarity”.
Crypto exchange Coinbase has kicked off its plans to launch a Lend feature designed to let customers earn interest on certain coins. as reported by bloomberg. Changes announced by the company Updating blog post from the end of June, adding that it would also close the waiting list it had set up for the facility.
The cancellation came after Coinbase received a legal warning about the feature from the Securities and Exchange Commission. Earlier this month, Coinbase said That it would delay the now-canceled feature “at least until October”.
Coinbase promised that the Lend feature would provide users with a 4 percent APY return if they let the company lend to “verified borrowers” with it. The company plans to stabilize USDC to strengthen the facility, but Its price has not been significantly affected From this news its price is linked to the US dollar. The webpage containing information about the program, as well as the signup page for the waiting list, now redirects to the homepage of Coinbase (but it may be Seen on the Wayback Machine)
According to Coinbase, the SEC threatened the company with lawsuits if it launched the Lend feature. The regulatory body argued that the lending would deal with securities, and therefore would be regulated as an investment product. Earlier in September, the CEO of Coinbase posted a thread on Twitter, saying that the SEC was unclear about why the feature would be considered a security, or what Coinbase could do to fix it. Nevertheless, the lend feature appears to be similar to that of an interest-bearing bond, which would normally be regulated as securities. an obvious sub-tweet Told the SEC.
Coinbase said in its cancellation update that it is still seeking “regulatory clarity for the cryptocurrency industry.”
According to Coinbase, SEC asks for name and contact information of everyone on the above waiting list as part of its investigation. The company did not immediately respond to a request for comment about what would happen to the data of those who signed up for the waiting list, which has now been closed.