Billion-dollar crypto exchange Coinbase will not be releasing their crypto product called Lend. After weeks of uncertainty, Coinbase finally succumbs to pressure from the SEC over their controversial new product launch.
This was a product that would allow users to lend their crypto back to the exchange. In return for interest rates that are typically higher than what is normal in the “physical” world.
This is not a new idea; other less-known exchanges offer this ability such as Gemini. Due to Coinbase being the poster child for crypto exchanges, they are the ones who are currently facing the heat.
On Friday, they updated their launch post to notify customers of the closure.
Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world. As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program announced below. We have also discontinued the waitlist for this program as we turn our work to what comes next. We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programs and products to our customers.
As the SEC continues to battle with the crypto world, it’s interesting to see where else they will dip their toes. There are indeed arguments for regulation to help and “protect” customers. The problem lies to what degree because creative freedom is a must to move forward.
