It appears that Coinbase would prefer to be on the safe side rather than dealing with U.S. Securities and Exchange Commission’s scrutiny and pressure.
In a blog that the crypto exchange has posted, it announced that it would no longer pursue its plans to roll out its “Lend” service, which is supposed to be a crypto-based lending service.
Lend was supposed to be a service that would pay users if they lend out their tokens, but the SEC has warned the company about the legal consequences of such service.
Showing that it is always committed to follow regulatory policies, Coinbase decided to silently cancel its plan.
Coinbase is well aware that the Commission’s warning shouldn’t be taken lightly, as the SEC made it clear that it would sue the company once it proceeds with its plans.
SEC argued that the features of the Lend service is a security, and the nature of its service goes against the existing policies of the Commission. The SEC has also conducted a company-wide probe and requested names on the waitlist for the product.
Coinbase Chief Executive Officer Brian Armstrong shared the crypto exchange’s debacle with SEC on social media, and the crypto community shared their opinions about the situation.
One of the high-profile crypto advocates who shared his opinion was Mark Cuban, who advised Coinbase to act more aggressively on U.S. regulators, particularly on the SEC.
Coinbase has been making a lot of big leaps lately to further cement its strong position in the highly competitive crypto industry.
Previously, the company has filed for futures and derivatives trading and was able to sign deals with various government agencies.
It has recently partnered with Homeland Security, which would allow the department to use its analytics tools. This latest deal is the biggest contract that Coinbase has won from the government so far.
Image courtesy of Cointelegraph News/YouTube