14:58
Traffic jam:   4
$
92.5919
100.2704

Shares of crypto exchange Coinbase fell 3%

10 September 2021
5095
2 min.
4
Shares of crypto exchange Coinbase fell 3%

Threaten to sue

Coinbase stated the SEC's information of intent to request it in connection with the planned launch of a product that would allow stabelcoins owners to make money.

Coinbase (COIN), the world's only cryptocurrency exchange, has announced that the U.S. SEC intends to sue the company over a new loan product that Coinbase plans to launch in the coming weeks.

The news suggests that Coinbase has effectively fallen victim to the lack of proper regulation and legislative rules regarding the new crypto market in the US.

At the same time, the incident confirms that the SEC, under the leadership of new chairman Gary Gensler, is preparing a series of rules that cryptocurrency and other digital asset trading companies will soon fall under. The SEC's reason for suing Coinbase is the new Lend lending feature on the company's platform. This feature allows owners of USD Coin Stablecoins (whose value is backed by 1-to-1 dollars) to earn money by lending them to traders. In addition to providing storage, payment and trading services for cryptocurrencies, cryptocurrency exchange Coinbase already offers cryptocurrency stacking services, offering it "as an analogue to an interest-bearing savings account.

Coinbase CEO Brian Armstrong complained in a series of tweets that versions of Lend "have been offered by many great crypto companies for years."

Armstrong also accused the SEC of "refusing" to meet with him in May, shortly after the company went public and Gensler was appointed as the new chairman.

Coinbase is now providing the materials and documentation requested by the SEC, and employees are testifying. The launch of Coinbase Lend has been delayed until at least October.

CEO in his Twitter account said: "We promise to support the law, but the law is sometimes unclear. Therefore, if the SEC wants to publish the guidelines, we will follow them."

Persons1 and Companies3 in the news

Chairman of Unined States Securities and Exchange Commission
1 place
Coinbase
1 place
X (Twitter)
3 place
Section:

Discussion

Rating companies
Tesla
14 Mention
Instagram
13 Mention
JP Morgan Chase
12 Mention
Walt Disney Company
12 Mention
Ford Motor Company
10 Mention
Netflix
10 Mention
Amazon
9 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8112639448
Died this year
14258114
Born this year
35077484