Coinbase Global Inc. is succumbing to the pressure of US regulators and is planning to formally launch a product that would be helpful for the users. It would pay users if they lend their tokens. However, as per Bloomberg News, the decision to offer the lending product has been balked and the company announced the change in a blog post on Friday.
Coinbase Global Inc, decided upon the same after it received a threat from the Securities and Exchange Commission that threatened to file a suit if the company proceeded with the plan. This step also implies a reversal for Coinbase when its executives published defiant posts on social media on September 7th when it got into a disagreement with the SEC in public.
Coinbase’s about-turn comes since the Securities and Exchange Commission under Gary Gensler has imposed stringent norms related to cryptocurrency products that fall under its purviews and their trading platforms.
The Lend program would ensure that a user can enjoy 4% if he lent his token. However, this particular state of affairs has stirred up tensions between the regulators and the crypto industry as per Bloomberg News.
In a post dated September 17th, the firm Coinbase Global Inc. released a statement that said that as they continue to work towards getting regulatory clarity for the entire crypto industry, they have made the decision not to launch the crypto product.
The firm also thanked its hundreds of thousands of customers for signing up for the program and expressing their interest in the Lend program. These customers were from across the country. It also promised and assured that it would continue extending innovative and trusted programs and products for its customers. However, as per Bloomberg News, any spokesperson from the Securities and Exchange Commission (SEC) decided not to comment.