• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
Advertisement
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

Coinbase Backtracks On Lending Platform Plans After SEC Warning

September 21, 2021
in Crypto News
Reading Time: 4 mins read
A A
0
Coinbase Backtracks On Lending Platform Plans After SEC Warning
0
SHARES
16
VIEWS
ShareShareShareShareShare

Coinbase Inc., a major cryptocurrency exchange based in the U.S., has decided to rescind its plans of launching Lend, its flagship financial product made specifically for lending with USD Coin ($USDC).

The firm’s CEO, Brain Armstrong, says that the cancellation of the plans set for Lend was due to a warning issued to the exchange by the U.S. Securities and Exchange Commission (SEC). Coinbase later clarified its position on the matter with the following statement:

“Last Wednesday, after months of effort by Coinbase to engage productively, the SEC gave us what’s called a Wells notice about our planned Coinbase Lend program. A Wells notice is the official way a regulator tells a company that it intends to sue the company in court. As surprised as we were at the SEC’s threat to sue without ever telling us why, we want to be transparent with you about the course of events leading up to it.”

Coinbase further says that their company has been “proactively engaging” with the SEC on matters of compliance for the past six months that Lend has been in their product pipeline. However, despite this perceived cooperation with the regulatory agency, Coinbase “chose not to” launch the product because they believe “in the value of open and substantive dialogue” with regulatory authorities such as the SEC.

 

Prior to any official announcement of the product’s details, Coinbase claims that they have placed the product for review and evaluation with the SEC, calling the move “far from the norm” in the blockchain industry, given how most other crypto companies already have lending products on the market, especially the select number of firms focused in the decentralized finance (DeFi) sector. 

 

The SEC claims that Coinbase’s Lend is in violation of securities regulations which were highlighted in case precedents ruled on by the U.S. Supreme Court such as the Howey and Reves case (SEC v. W. J. Howey Co., 328 U.S. 293 (1946). This warning from the Commission was communicated by Paul Grewal, Chief Legal Officer at Coinbase.

“The SEC won’t share the assessment itself, only the fact that they have done it. These two cases are from 1946 and 1990. Formal guidance from the SEC about how they intend to apply Howey and Reves tests to products like Lend would be a big help to regulating our industry in a responsible way. Instead, last week’s Wells notice tells us that the SEC would rather skip those basic regulatory steps and go right to litigation.” wrote Grewal.

Other crypto lending platforms such as BlockFi and Celsius have received similarly-toned warnings with the same legal reference.

 

Coinbase’s Lend service would have provided users and prospective investors with a 4% APY programme on the USD Coin ($USDC), a fully reserved, fiat-backed stablecoin developed by Circle Inc. Coinbase says that the product was aimed at the “financial empowerment” of its customers, providing a way for users to earn interest from select assets including stablecoins and other crypto tokens.

 

With the Lend service now rescinded and perhaps set for another round of review by the SEC, Coinbase later announced that it will still go ahead with the fresh relaunch of Coinbase Prime with updated capabilities, its comprehensive platform for institutional investors.

 

Coinbase Prime will provide institutional investors as well as other targeted financial audiences with “advanced trading, battle-tested custody, and financing in a single solution.” The Coinbase Prime platform has been used by a number of premiere firms in the industry such as Meitu, One River, and MicroStrategy.

 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Credit: Source link

ShareTweetSendPinShare
Previous Post

3 Ways to Make Money from Falling Markets

Next Post

Zivo Bioscience Surges Over 66%

Related Posts

Tottenham Hotspur to issue a Web3 fan token using Chiliz Blockchain
Crypto News

Tottenham Hotspur to issue a Web3 fan token using Chiliz Blockchain

September 29, 2023
2
Bitcoin on the Verge of a Massive Move, But Whic Way? (BTC Price Analysis)
Crypto News

Bitcoin on the Verge of a Massive Move, But Whic Way? (BTC Price Analysis)

September 29, 2023
3
Unlocking $16 Trillion: First Tokenized Property Successfully Registered in EU Land Registry, Setting New Standards
Crypto News

Unlocking $16 Trillion: First Tokenized Property Successfully Registered in EU Land Registry, Setting New Standards

September 28, 2023
3
Horizen Introduces Groundbreaking DAO for Community-Led Governance
Crypto News

Horizen Introduces Groundbreaking DAO for Community-Led Governance

September 28, 2023
4
$0.2 proves to be strong resistance for Stellar. The US dollar’s strength is responsible for Stellar’s weakness.
Crypto News

$0.2 proves to be strong resistance for Stellar. The US dollar’s strength is responsible for Stellar’s weakness.

September 28, 2023
6
Next Post
Zivo Bioscience Surges Over 66%

Zivo Bioscience Surges Over 66%

Recommended

Grayscale’s Message To The SEC After Winning In Court

Grayscale’s Message To The SEC After Winning In Court

September 6, 2023
5
Bitcoin Spark (BTC) and These Cryptocurrencies Poised to Benefit From Coinbase’s Institutional Lending Service

Bitcoin Spark (BTC) and These Cryptocurrencies Poised to Benefit From Coinbase’s Institutional Lending Service

September 10, 2023
6
Stephan Apel Appointed as Outlier Ventures’ Chief Executive Officer

Stephan Apel Appointed as Outlier Ventures’ Chief Executive Officer

September 21, 2023
5
Ripple CTO Reveals XRPL’s Evolution: From DEX to Payments

SBI Holdings Puts XRP to Work With Lending Service

September 19, 2023
6
Ripple Co-Founder Donates $5M to Environmental Campaign Against Bitcoin Mining

Growing Complexity in Bitcoin Mining Landscape Amidst Centralization Risks: Coin Metrics

September 28, 2023
5
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Coinbase approved to offer perpetual futures trading to non-U.S. residents by Bermuda Monetary Authority
  • Tottenham Hotspur to issue a Web3 fan token using Chiliz Blockchain
  • Bitcoin on the Verge of a Massive Move, But Whic Way? (BTC Price Analysis)

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?