Coinbase wycofuje program pożyczkowy
Coinbase's previously announced Lend loan program, which provides 4% per annum for crypto investors, has been canceled following the threat of a lawsuit from the US SEC.
In early September, Coinbase CEO Brian Armstrong spoke about the threat of a lawsuit from the SEC if Lend is launched. And although the CEO of the crypto exchange announced earlier that the team intends to defend their rights in court, Coinbase representatives recently updated their blog post for June, stressing that the launch of the USDC APY program was canceled. Initially, the Lend launch was planned to be only slightly delayed until October this year.
The loan product was designed to bring the exchange's clients an annual return of 4%, which is several times higher than offers related to savings accounts from traditional banks around the world, offering about 0.5%.
The SEC reported that the Coinbase product was in violation of securities law, and then threatened with a lawsuit if Lend was launched. At the same time, there was no more detailed explanation of how Lend violates the law from the SEC. Coinbase lawyer Paul Greval also questioned the agency's findings, saying Lend cannot be classified as an investment contract or securities.
In an amendment to a post published in June, Coinbase officials said they made a difficult decision due to the desire to achieve regulatory clarity not only for the exchange, but for the entire cryptocurrency industry.