What's new

Coinbase “caught off guard” after SEC threatens with legal action

mlawson71

Well-Known Member
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.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Similar threads

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)

Top
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock    No Thanks