Coinbase scraps plan for crypto lender after SEC threatens to sue

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Coinbase scraps plan for crypto lender after SEC threatens to sue
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Lend would have paid users interest for lending out their tokens

Coinbase Global is bowing to pressure from US regulators and tabling plans to launch a product that would pay users interest for lending out their tokens.

“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 firm said in its September 17 post. “We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programmes and products to our customers.

In a September 7 Twitter tirade over the SEC’s opposition to Lend, Coinbase CEO Brian Armstrong accused the regulator of “sketchy behaviour” and “intimidation tactics”. The post wasn’t billboarded on the website. No press release was sent or potential customers who signed up early for the programme contacted. It wasn’t signed by Armstrong or Paul Grewal, the company’s chief legal officer, who also blasted the SEC on September 8.

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