(Coinbase) Coinbase Global Inc. has stopped the launch of its USDC APY lending product after the Securities and Exchange Commission termed it as a breach of security laws.
The crypto exchange also discontinued the waitlist for the program, which had hundreds of thousands of signups.
Coinbase proposed a lending product in June where users could earn up to 4% interest on some cryptocurrency assets.
The cryptocurrency exchange platform said it received a threat of a lawsuit from the SEC if it continued pursuing the plan.
Brian Armstrong, the Coinbase founder, accused SEC of not giving them an explanation as to why the product violated security laws. SEC had not responded to the concerns of the exchange.
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