Coinbase cancelled its cryptocurrency loan programme after the Securities and Exchange Commission (SEC) chose to pursue the digital asset company.
Despite prior promises, Coinbase has announced that its USDC lending product would not be offered to clients. Coinbase had planned to allow users to earn interest on some cryptocurrencies, beginning with the stablecoin USC Coin, but the company announced the cancellation by re-headlining and revising a blog post from June.
Coinbase blog publishes : “we are not launching the USDC APY program. 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. We have also discontinued the waitlist for this program as we turn our work to what comes next.”
According to TheCryptoBasic, CEO Brian Armstrong publicly announced that the Securities and Exchange Commission has threatened the exchange with a lawsuit over the yet-to-be-launched lending product.
Coinbase chastised the SEC for failing to explain why it thought the yield programme was an unregistered security.
Armstrong also stated that the financing products had been available for years, meaning that Coinbase was subjected to unneeded regulatory scrutiny.
Those expecting a fight between the largest cryptocurrency exchange in the United States and the Securities and Exchange Commission will be disappointed, as Coinbase is no longer offering a lending programme.