Cryptocurrency exchange Coinbase announced that the SEC is threatening to sue if it launches Lend. Lend is the platform’s feature that would give users 4% APY for USD Coin.
We shared this view and the details of Lend with the SEC. After our initial meeting, we answered all of the SEC’s questions in writing and then again in person. But we didn’t get much of a response. The SEC told us they consider Lend to involve a security, but wouldn’t say why or how they’d reached that conclusion.
They also asked for the name and contact information of every single person on our Lend waitlist.
That second part is particularly gross. Update: I think this is a nice write-up from Bloomberg on the matter.