• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

U.S. markets regulator takes aim at Coinbase lending product

September 8, 2021 by David Barret Leave a Comment

September 8, 2021

WASHINGTON/HONG KONG (Reuters) -The U.S. Securities and Exchange Commission has told Coinbase Global Inc that it plans to sue the cryptocurrency exchange if it goes ahead with plans to launch a programme allowing users to earn interest by lending digital assets, Coinbase said.

The top U.S. markets regulator has issued Coinbase with notice it intends to legally charge the company, Coinbase’s chief legal officer, Paul Grewal, said a statement on Tuesday. Coinbase now plans to delay the launch of its ‘Lend’ product until at least October.

“The SEC does not comment on the existence or nonexistence of a possible investigation,” a spokesperson for the agency said.

The SEC has been ratcheting up scrutiny of the crypto world. Crypto proponents have hoped that Gary Gensler, who became SEC chair in April, would bring rule clarity to an industry that has been operating in a regulatory gray area.

But Gensler is seeking more authority for the agency to oversee cryptocurrency trading, lending and platforms, a world he described last month as a “Wild West” that is riddled with fraud and investor risk.

Gensler has said some digital assets and platforms are operating as or offering securities, bringing them under the SEC’s oversight.

In a lengthy Twitter thread, Coinbase CEO Brian Armstrong criticized the agency’s handling of the firm’s plans to roll out a lending product the SEC has determined to be a security. Both the CEO and chief legal officer said Coinbase disputes that view.

Armstrong said he had tried to engage with regulators for months and received the legal notice after notifying the SEC of plans to move ahead with ‘Lend’ in a few weeks.

Programmes that allow owners of cryptocurrencies to lend them in return for interest are becoming more common around the world, but some regulators, particularly in the United States have started to raise concerns, arguing that such products should comply with existing securities laws.

The U.S. state of New Jersey ordered the cryptocurrency platform BlockFi Inc https://ift.tt/3yXcNYu in July to stop offering interest-bearing accounts that have raised $14.7 billion from investors.

“If we end up in court we may finally get the regulatory clarity the SEC refuses to provide. But regulation by litigation should be the last resort for the SEC, not the first,” Armstrong said on Twitter.

Shares of Coinbase were down 3.8% by 10:26 a.m. EDT (1334 GMT).

(Reporting by Chris Prentice in Washington, Alun John in Hong Kong and Kanishka Singh in Bengaluru; Editing by Ana Nicolaci da Costa and Mark Porter)

Source Link U.S. markets regulator takes aim at Coinbase lending product

David Barret
David Barret

Related posts:

  1. European stocks fall 1% on growth worries
  2. Guinean political prisoners freed, regional bloc to discuss coup
  3. Pakistan suggests inviting Taliban-run Afghanistan to regional forum
  4. Soccer-Premier clubs could face sanctions if they play South American players

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • DNA From Greenland Sled Dogs – Maybe The World’s Oldest Breed – Reveals 1,000 Years Of Arctic History
  • Why Doesn’t Moonrise Shift By The Same Amount Each Night?
  • Moa De-Extinction, Fashionable Chimps, And Robot Surgery – No Human Required
  • “Human”: Powerful New Images Mark The Most Scientifically Accurate “Hyper-Real 3D Models Of Human Species Ever”
  • Did We Accidentally Leave Life On The Moon In 2019 – And Could We Revive It?
  • 1.8 Million Years Ago, Two Extinct Humans Had One Of The Gnarliest Deaths In History
  • “Powerful Image” Of One Of The World’s Rarest Tigers Exposes The Real Danger In Taman Negara
  • Evolution, Domestication, And A Lot Of Very Good Boys: How Wolves Became Dogs
  • Why Do Orcas Have White Spots Near Their Eyes?
  • Tomb Of First King Of Ancient Maya City Discovered In Belize
  • The Real Reason The Tip Of Your Tape Measure Wiggles Like That
  • The “Haunting” Last Message From NASA’s Opportunity Rover, Sent From Inside A Planet-Wide Storm
  • Adorable Video Proves Not All Gorillas Hate The Rain. It Might Even Win One A Mate
  • 5,000-Year-Old Rock Art May Show One Of Ancient Egypt’s First Rulers
  • Alzheimer’s-Linked Protein Levels “20 Times Higher” In Newborn Babies – What Does This Mean?
  • Americans Were Asked If They Thought Civil War Was Coming. The Results Were Unexpected
  • Voyager 1 & 2 Could Be Detected From Almost A Light-Year Away With Our Current Technology
  • Dams Have Nudged Earth’s Poles By Over 1 Meter In The Past 200 Years
  • This Sugar Could Be A Cure For Male Pattern Baldness – And It’s Been In Our Bodies All Along
  • “Cosmic Immigrants”: Daytime Star Seen In 1604 May Be An “Alien Type Ia Supernova”
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version