Coinbase to revoke lending product because of SEC threat

Coinbase exchange finally officially announced that they will not launch their APY program for their customers and now they will work on other products and services.

As we know, Coinbase exchange announced that they will launch a yield product for their customers that will offers 4% earnings on the holding of particular assets. They especially decided for the USDC. But when the US SEC came to know about their plan then they said that the SEC will describe the USDC APY product of Coinbase as an unregistered Securities. After that Coinbase asked for the clarity but the SEC didn’t respond. 

Read also: SEC hammer on Coinbase’s Yield Product, Coinbase CEO response

Through the Coinbase’s blog, Exchange announced that they will no more launch their lending program ” USDC APY” 

 “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.”

Further Coinbase added in the blog that they are thankful to their users, who showed their interest in their programs. Now Coinbase will look forward to another product and services. 

“We will not stop looking for ways to bring innovative, trusted programs and products to our customers.”

Here this matter is not going to stop because here Coinbase Exchange asked for the clarity on the regulators rules. Now the United States Securities & Exchange Commission is working on a crypto draft, which will be a redesigned form of the existing framework, will explain and provide information perfectly about the Securities in crypto. 

Read also: Ripple critic says Ripple is security