Coinbase has updated its Lend announcement blog from June and said that the company will no longer offer the program that would allow interest-earning accounts and loans with the USDC stablecoin.
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"Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world," said Coinbase in the updated blog. "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 the USDC APY program announced below. We have also discontinued the waitlist for this program as we turn our work to what comes next."
This announcement comes less than two weeks after the SEC issued the company a Wells Notice, signaling that the regulatory body had investigated Coinbase and was preparing to bring down some sort of action.
The Coinbase Lend web page is no longer accessible and now redirects to the exchanges home page. When Coinbase found out that the SEC was preparing some level of action against the company the CEO, Brian Armstrong, took to Twitter with a frustrated thread and even called the SEC's behavior "really sketchy."
Armstrong ended his thread insinuating that the SEC and Coinbase could end up in court over its lending and borrowing product and maybe then there would finally be more regulatory clarity.
"If we end up in court we may finally get the regulatory clarity the SEC refuses to provide. But regulation by litigation should be the last resort for the SEC, not the first," said Armstrong.
Instead, Coinbase seems to have opted to avoid the SEC by simply removing the product entirely. It is still unknown what the result of the Wells Notice will be and if Coinbase will ever release some sort of crypto lending and borrowing program.