Coinbase Accuses SEC of “Sketchy Behavior” After Threat to Sue

Source: Bloomberg

“Coinbase Global Inc.’s chief executive officer blasted the Securities and Exchange Commission for ‘really sketchy behavior’ after the company received a warning that regulators plan to sue. In a Twitter thread, CEO Brian Armstrong said the SEC would be creating an unfair market if it tries to shut down its new lending product, which would allow consumers to earn interest on their crypto holdings. … The issue centers on Coinbase’s product called Lend, which the company has marketed as a high-yield alternative to traditional savings accounts that could earn an annual yield of 4%. The product hasn’t been launched yet, but Coinbase encouraged customers in June to sign up for pre-enrollment. The question of whether DeFi lending pools qualify as securities is shaping up as a key legal battleground for the SEC.” (09/08/21)