Skip to main content

The SEC has threatened a lawsuit against Coinbase for "mystery" crypto lending service

 

The most well-known cryptocurrency exchange The Securities and Exchange Commission (SEC) of the United States has threatened Coinbase with legal action in connection with its plans to launch a lending service on its platform.

The SEC issued Coinbase a Wells notice, which is an official mechanism for the government to notify a company that it intends to sue them. Coinbase responded by agreeing to temporarily suspend its Lend product.

“Despite Coinbase removing Lend from the market and providing extensive information,” Mr. Grewal continued, “the SEC has yet to explain why they believe there is a problem.”

“Instead, they've told us that if we launch Lend, they'll sue us. We requested that the SEC provide us with an explanation, but they refused. Mystery and uncertainty only serve to suffocate innovative products that customers want and Coinbase wants.

Mr. Grewal stated that Lend would be suspended until “at least October” while the company worked to resolve the issues. The SEC did not respond to a comment request. With its initial public offering in April, Coinbase became the first cryptocurrency exchange to become a publicly-traded company.

Coinbase is a critical component of the crypto ecosystem, serving as a barometer for the increasing mainstream adoption of bitcoin and cryptocurrency in the coming years.

Comments

Post a Comment

Popular posts from this blog

To boost trade, Africa is simplifying international payment systems

It's hard to transfer money between African countries. The Ghanaian king settled a bill with a Nigerian attorney. His experience highlights a systemic problem impeding Africa's economic growth: high transaction costs and inconvenience. 15% of all imports and exports occur between 55 African countries. 60% of Asian trade is within Asia. 70% in EU. The difficulty of international payments hinders African trade. There are also high tariffs, long border procedures, and congested roads. Proponents of AfCFTA say easing trade restrictions will boost trade, FDI, and economic growth. 50 million people will be lifted out of extreme poverty by 2035 due to the accord's positive impact on real income, which is projected to rise 9.1%.  Another issue: In Africa, currency values fluctuate. From July 2021 to 2022, Ghana's currency fell from 6 to 8. Volatile currencies make financial transactions more costly and risky. To overcome these problems, PAPSS facilitates financial transactions ...
Post a Comment
Read more

A more accessible blockchain-based app dev in progress

Outside of cryptocurrency, blockchain has a lot of potential. Decentralized applications and distributed ledgers may soon be used by established industries such as finance, automotive, supply chain, and mobility. However, creating your own blockchain from the ground up is quite tough. Lisk co-founder Max Kordek discusses how to make decentralization more approachable. Blockchain's decentralized, tamper-proof nature has the ability to decentralize power and offer the collective hive more data control. Data from different manufacturers may be linked, and data from different vehicles could be shared. With so much money pouring towards asteroid mining and Mars expeditions, an interplanetary economy appears to be a foregone conclusion. Established businesses are less likely to have a say in the change than new entrepreneurs. When Bitcoin was first launched, the development ecosystem was "terrible," according to Kordek. He claims that developing on the open source and immutable...
Post a Comment
Read more

Embracing blockchain as a tool for change

Blockchain technology is increasingly being employed in enterprises outside of the financial industry, and this trend is expected to continue in the future. By 2023, it is estimated that investment in blockchain technologies will reach US$16 billion per year on average. (Approximately RM68 billion). To put this in perspective, consider the fact that US$8.7 billion was invested in blockchain and cryptocurrencies in the first half of 2021. The Malaysian government is aiming to create a long-term environment for the country's technology and financial services industries in the next years. Founded in Singapore in July 2021 by Iskandar Investment Bhd as a wholly-owned subsidiary, the Ignite Global Innovation and Technology Exchange will be the world's first global innovation and technology exchange. In Malaysia, IIB Ventures Sdn Bhd is in charge of the development of the blockchain industry's ecosystem. This is why BV@M has set a goal of creating a blockchain ecosystem in Medini...
Post a Comment
Read more