Coinbase Rolls Back Its USDC Lending Plans Fearing SEC Lawsuit
In the freshly brewing battle between COINbase and the SEC, the securities regulators seem to be winning as of now. Last Friday, September 17, crypto exchange coinbase (NASDAQ: COIN) released an update stating that it will roll back its plans to launch the USDC APY program.
This happens as the U.S. SEC threatened a lawsuit if coinbase doesnt follow the seucities laws in the stablecoin LENDing. In an update to its launch post, Coinbase noted:
As we continue our work to seek regulatory clarity for the crypto industry as a whole, weve made the difficult decision not to launch the USDC APY program announced below. We have also discontinued the waitlist for this program as we turn our work to what comes next.
Coinbase had already received interest from thousands of customers across America to sign-up for the program. However, Coinbase noted that it will continue with its efforts in bringing innovative and trusted programs to its customers.
SEC has A Problem With Lending and Staking
Crypto lending is nothing new as exchanges like Geminin have been already offering it. However, through it Lend product, Coinbase also wanted to allow its users to stake their USDC stablecoins and earn 4% APY.
It seems that the SEC isnt comfortable with the fact that the investors will forfeit the custody of their coins to Coinbase and their partners. They also indicated Coinbase that its lending program does involve a security.
Coinbase CEO Brian Armstrong lashed out at the SEC for threating the exchange of the lawsuit. In fact, the CEO also called out the SEC for its “sketchy behaviour”.
However, this isnt going to stop Coinbase from bringing new products to the market. On Monday, September 20, Coinbase announced its “PRIME” brokerage services for 9K institutional investors. Coinbase has been one of the most-preferred destinations for institutional trading.
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Crypto King -Bitcoin Back above 60K: As SEC moves to approve first US Bitcoin Futures ETF.
The Crypto market has witnessed great volatility last week with Bitcoin attempting to reclaim the previous All time high (ATH) since March at $64k but stopped short at $62,888 after the news of the possible approval of a Bitcoin ETF this new week with Proshare Trust topping the list of the applied exchange for such approval. The possibility of approving the Bitcoin ETF comes after a decade of rejection for all applied ETFs. The SEC Chairman - Gary Gensler has hinted last month that he would be open to the submitted applications which is due for final approval this new week. Bitcoin could hit 100k within a short while if finally approved this week.
SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF
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Grayscale CEO: SEC Likely to Approve Ethereum ETF After Greenlighting First Bitcoin Futures ETF
Head of the largest crypto asset manager believes that after approving a Bitcoin futures ETF, the SEC is likely to bring an Ethereum-based ETF to the market
Coinbase Wants the U.S. To Revamp Crypto Regulations
The crypto exchange company published a four-pillar document today.
- Token conversion
- Exchange rate conversion
- Calculation for foreign exchange purchasing
- Please enter the number
- Current Currency
- purchasing price
- Amount Required