U.S. markets regulator takes aim at Coinbase lending product
WASHINGTON/HONG KONG, Sept 8 (Reuters) – The U.S. Securities and Exchange Commission has told Coinbase Global Inc (COIN.O)thatit plans to sue the cryptocurrency exchange if it goes ahead with plans to launch a programme allowing users to earn interest by lending digital assets, Coinbase said.
The top U.S. markets regulator has issued Coinbase with notice it intends to legally charge the company, Coinbase’s chief legal officer, Paul Grewal, said a statement on Tuesday. Coinbase now plans to delay the launch of its ‘Lend’ product until at least October.
“The SEC does not comment on the existence or nonexistence of a possible investigation,” a spokesperson for the agency said.
The SEC has been ratcheting up scrutiny of the crypto world. Crypto proponents have hoped that Gary Gensler, who became SEC chair in April, would bring rule clarity to an industry that has been operating in a…