The Securities and Exchange US Commission (SEC) threatens to bring Coinbase to trial in case the company insists to carry on Lend, a product aimed at savers that promises to reward its subscribers with the 4% interest. This is important news not only for the platform concerned, but also for others who were planning similar moves.
It was to make known what is happening Paul Grewal, number one in Coinbase's legal department. Who recalled in a post published on the company blog the six months of discussions with the SEC on the topic. Discussion ended abruptly last Wednesday with the threat of legal action if the platform moves forward with Lend.
Coinbase, the announcement of the month of June
Coinbase announced its plans to launch Lend in June. By advertising the product as a solution able to guarantee cryptocurrency owners a much higher interest than is usual in normal banks with interest-bearing accounts. To give a framework based on absolute peace of mind, the company has also promised a guarantee that can effectively replace the FDIC insurance provided with membership in banking products.
To make everything even safer, in Coinbase's intentions, it was to be its exclusive application to USDC stablecoins, similar to cash as they are linked to the US dollar. An approach judged by experts much more reassuring than BlockFi's products. Which launched and advertised products that promised returns of up to 8% on various crypto assets.
And BlockFi is now looking with awe at what is happening. The warning to Coinbase, in fact, sounds like one early conviction for the New York bank which pays monthly those who deposit its tokens, engaged in a series of disputes with the regulatory bodies of many states.
Brian Armstrong's answer
After the announcement of Paul Grewal, it then arrived by return of post response from Brian Armstrong what is happening. The CEO of Coinbase, in fact, accused the SEC on Twitter. Particularly he said he was sorry for the lack of transparency of the cryptocurrency authority. Stating that it rather prefers to engage in behind-the-scenes scare tactics.
He also accused the SEC of allowing others to operate for long months without even seeking a prior settlement as Coinbase does. A hint that seemed to many an attack on BlockFi itself. Concluding, however, to look at the courtrooms as a last resort, to be avoided absolutely.
Brad Garlinghouse's ironic message
In the dispute between Coinbase and the SEC, he also intervened Brad Garlinghouse, the number one of Ripple Labs, in turn already engaged in a lawsuit with the authority. Which has dusted off a popular Die Hard meme, to give his mocking welcome to the platform in what he called a party. An answer to be connected without doubt to the lack of support of the scene crypto in the quarrel in which his company has been a protagonist for months now.
Meanwhile, the crollo which affected the shares of Coinbase after the announcement of the dispute with the SEC. After the drop in11,63% which characterized the day of Tuesday, in today's trading the stock has continued to lose ground dramatically. And according to analysts, the trend could continue and worsen in the near future.