Global crypto exchange Coinbase Global Inc. has called off its plans to launch its lending product following threats of the US Securities and Exchange Commission, the company announced in a statement.
- Coinbase said it will no longer use its USDC APY program, and its waitlist has been discontinued, as the firm continues to seek clarification from the regulator regarding the matter.
- The exchange said it has hundreds of thousands of clients who signed up for the service, which would give an average annual percentage yield of 4% on the USD Coin. Plans to launch the product were announced in June.
- Conflict with the SEC arose from the SEC’s consideration of Lend as a security, which Coinbase has refuted saying customers will not be investing in the program, but rather lending the USDC they hold.
The latest Coinbase statement said its goal is to boost global economic freedom. COIN is up 0.71% premarket.