(Coinbase) US Securities and Exchange Commission is threatening to sue Coinbase over its new product known as Lend that promises stablecoin owners a 4% interest on their savings.
Coinbase Chief Legal Officer Paul Grewal has faulted SEC’s move saying the company has been holding talks with the regulator over the Lend offering product.
CEO Brian Armstrong has accused the SEC of lacking transparency in its “intimidation tactics.” Armstrong says the SEC is not enforcing its policies evenly for all companies, hinting at “last resort” court settlement with the regulator.
If the SEC proceeds with the move, it could spell doom for Coinbase and other firms targeting to offer high yield crypto products.
Coinbase announced the 4% Lend product in June, promising users a “peace of mind” guarantee as an alternative to the interest-bearing FDIC insurance.
COIN: NASDAQ is down -2.55% on premarket.
