Not Happy With the Treatment Meted Out By SEC, Coinbase Drops Future Lending Project

Coinbase and the people associated with it are genuinely not happy to see Securities & Exchange Commission (SEC) questioning a certain project which was never launched but was under development phase. Since the SEC has warned Coinbase officially through a notice that it will take up the matter to the Court, Coinbase has been forced to forget the idea of launching a “lending project”, which was not to the liking of SEC, informs Coinbase’s spokesperson.

A crypto lending project was underway with Coinbase – a globally renowned crypto platform that has recently become a listed company. The company had almost completed most of the work relating to the project’s completion. It even made an announcement that probably the project will be launched before the end of 2021. But now Coinbase has decided to proceed further with its future project which involved lending of virtual assets.

An official statement regarding the dismissal of the project has been issued by Coinbase. In the announcement, Coinbase revealed that it does not want to proceed any further with the lending program. The crypto firm also pointed out its unbreakable commitment towards the regulators and their defined rules. It was suggested in the statement that Coinbase has a huge customer base throughout the world. This was possible because the firm continued to develop and launch crypto products of investors’ interest. However, if the regulators have any concerns about the future, which though hasn’t been launched yet, then there is no purpose to proceed with the program. So the decision has been taken which is that Coinbase will not launch its lending project, clarified Coinbase in the statement.

Coinbase also said that it was one of the toughest decisions that the firm has ever taken. Too much sweat and liquidity were put into the project but there is no point in launching it when the regulator has concerns.

After the announcement, the firm has also informed each individual who subscribed to the waitlist of the lending program. The firm thanked all the investors who were keen in availing the lending project and apologized to them as well. However, the firm made a commitment to its present and future customers that it will continue to launch new projects of their interest.

It was in June this year when Coinbase had announced the launching of a lending program. The program was designed in a manner that it would greatly benefit the users. Huge interest rates were kept for users which were almost double of what is usually available to them in saving accounts. Even SEC was very much aware of the project and its possible date of launch. Since June, SEC did not complain about Coinbase’s lending program and permission was duly obtained by Coinbase from SEC. However, a week ago, SEC unexpectedly claimed that Coinbase’s lending program will inevitably going to involve “securities”. Coinbase was then warned not to launch the program or else SEC will take appropriate legal action in a court of law.