News

SEC threatens to sue Coinbase

The company will keep its customers informed at every step as things progress

Coinbase SEC

SEC threatens to sue Coinbase. Source: blog.coinbase.com

The Securities and Exchange Commission (SEC) has threatened to sue Coinbase.

The threat arises from the company’s new product, Lend. Although it’s yet to be launched, Lend is a product that will provide a 4% annualized percentage yield to its annual customers by lending USD coin to verified borrowers.

Coinbase has held talks with SEC for close to six months. Despite the ongoing discussions, SEC has issued the company a ‘Wells Notice’. The Wells Letter is a formal way of SEC’s announcement that it may levy charges against a firm or its employees.

Even with the Wells Notice, SEC has not issued an explanation on the issue with the Lend program. However, Coinbase could be sued if they launched the program, even without the issuance of reasoning for the threat.

Brian Armstrong, Coinbase CEO, states that the company is fully compliant with all requests issued by the Securities and Exchange Commission. This includes testimony from employees and subpoenaed records.

Coinbase has been proactively engaging with the SEC about Lend for nearly six months. We’ve been eager to hear their perspective as we explore innovative ways for our customers to gain more financial empowerment on Coinbase
Coinbase

We’ve reported that Coinbase is now available in Japan.

SEE ALSO:

Pay Space

6742 Posts 0 Comments

Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.