Coinbase (COIN) +0.22% announced it was abandoning its plans for a crypto lending programme Lend. The program caused a spat between the company and the Securities and Exchange Commission.
The decision was announced on Coinbase’s website after SEC chairman Gary Gensler doubled down on his stance against crypto exchanges, ahead of his appearance before the US Senate banking committee.
The dispute between the SEC and Coinbase came to a head when the SEC began legal action against the crypto exchange over the lending program. Coinbase published a blogpost stating its struggle against the US watchdog.
After months of trying to engage with the @SECGov on our planned Coinbase Lend product, we recently received notice that it intends to pursue legal action against us. We believe dialogue is at the heart of good regulation, even if the SEC may not. https://t.co/OumvyTPQdj
— Coinbase (@coinbase) September 8, 2021
Now the company has edited said blogpost to announce the project will not go ahead: “As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch,” (Business Insider, 2021).
Brian Armstrong, founder and CEO of Coinbase, makes clear on his Twitter (TWTR) +0.82% account that he sees the SEC’s conduct toward crypto as a major set-back for US innovation. During his firm’s feud with the regulator he called its behaviour “sketchy”.
Armstrong strongly believes that the future of tech lies with cryptocurrencies. He regularly retweets and posts about how the SEC’s strict crypto policies are undermining progress in the United States.
Coinbase has stated that “hundreds of thousands of customers from across the country” has already signed up for its new programme Lend. Although this project will not continue, the company’s statement read: “We will not stop looking for ways to bring innovative, trusted programs and products to our customers.” (Business Insider, 2021).
Gary Gensler continues to face controversy over his Commission’s dealing with cryptocurrency, however he holds his stance on the matter. The chairman has called the digital asset space the “Wild West” and sees it as the regulator’s top priority to protect consumers.
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*Lee, Isabelle (20. September 2021). Business Insider: Coinbase abandons plans for crypto lending program after spat with the SEC. Last viewed on 21.09.2021 on https://markets.businessinsider.com/news/currencies/coinbase-crypto-lending-program-sec-lend-abandons-usdc-apy-waitlist-2021-9.
