Cryptocurrency exchange platform Coinbase has pushed back the launch of its Lend program until at least October after the Securities and Exchange Commission warned of legal action over the product, a company statement said.
- Coinbase said the SEC intends to sue the company if it launches Lend, which gives 4% annual percentage yields on USD Coin. Plans to launch the product were initially announced in June.
- Chief Legal Officer Paul Grewal said the company has been in talks with the regulator regarding Lend for nearly six months, but the SEC has yet to provide reasoning on the Wells notice.
- The SEC considers Lend security, which Coinbase has refuted as it said customers will not be investing in the program but rather lending the USDC they hold. The principal is secured, and Coinbase will repay upon request.
- Coinbase said it will continue to await regulatory clarity, noting the mystery and ambiguity only stifle the rollout of new products that firms can deliver to the market.
Coinbase opened a waitlist for Lend in June, but a public launch date was not announced. COIN is down 3.57% premarket, while USDC is up 0.01%.