Coinbase Gives Up Its Plans to Launch Lending Program amid SEC Issues

Coinbase Global Inc, the international arm of the US-listed cryptocurrency exchange, will not go ahead with its plan to launch a lending program amid regulatory tussles with the US authorities. According to an update published on a blog post, the company stated that their forthcoming interest-yielding USD Coin (USDC) APY feature is no longer on their plans.

“As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program announced below,” Coinbase noted, who also stated that the waitlist for the program has been removed as well. The lending program aimed to pay lenders of USDC Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term to the exchange a 4% interest.

“We had hundreds of thousands of customers from across the country sign up, and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programs and products to our customers,” the US-listed crypto exchange added. There are no additional details nor comments published by the company as of press time regarding the decision.

Coinbase vs. SEC Turmoil

The announcement could have reportedly come in response to the statement issued by the US Securities and Exchange Commission (SEC), where they stated on September 8 that Coinbase could face a lawsuit over concerns of breaching security laws if the firm launches its lending program. Coinbase’s Chief Legal Officer, Paul Grewal, detailed that the regulator sent the exchange a Wells notice, which officially tells the company that it intends to sue the company.

Coinbase stated that it has been cooperating with the financial market watchdog for nearly six months over the upcoming launch of the Coinbase Lend program, which intends to offer users fixed interest for lending specific Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. In an initial response, Coinbase has decided to delay the program’s launch until October.