Market Analysis Report (08 Sep 2021)

Brian Armstrong, the CEO of AA-ranked cryptocurrency exchange, Coinbase, has responded to threats that have been made by the U.S. Securities and Exchange Commission (SEC) regarding their yield product dubbed ‘Lend’.

Coinbase, which went public on the Nasdaq stock exchange in April, came under fire by the SEC – receiving a subpoena on Lend, a new product that would allow users to potentially earn double-digital yields on deposits of the widely traded USDC stablecoin. The returns offered by Coinbase would far outweigh those of traditional financial banks and institutions. 

In a blog post, the firm’s Chief Legal Officer, Paul Grewel, said that: “Despite Coinbase keeping Lend off the market and providing detailed information, the SEC still won’t explain why they see a problem. Rather they have now told us that if we launch Lend they intend to sue. Yet again, we asked if the SEC would share their reasoning with us, and yet again they refused.”

In a chain of tweets, CEO Brian Armstrong added that “They refuse to tell us why they think it’s a security, and instead subpoena a bunch of records from us (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why.”

Source: https://www.cryptocompare.com/email-updates/daily/2021/sep/08/