US-based cryptocurrency exchange Coinbase has announced that it will not be continuing its Lend cryptocurrency lending program.
In a September 17 update to a blog post announcing the program in June, Coinbase alluded to regulatory clarity challenges in the crypto industry in its decision not to bring the crypto lending product to market. . According to the exchange, “hundreds of thousands of customers across the country” had already signed up for Lend, a program that aimed to provide a 4% annual return on USD coin deposits (USDC).
The announcement comes less than two weeks after the Securities and Exchange Commission, or SEC, threatened Coinbase with legal action if the exchange launched Lend, which it deemed a security under its purview. Coinbase chief legal officer Paul Grewal later claimed the loan product was not an “investment contract or note” and questioned the SEC ruling as lacking clarification. At the time, the exchange announced that it would delay the launch of Lend “at least until October”.
Related: Regulatory and privacy concerns follow SEC threat to Coinbase
Coinbase continues to be one of the largest crypto exchanges in the United States and globally with more than $ 6.3 billion in daily transaction volume according to CoinMarketCap. This month, the exchange also announced plans to raise $ 1.5 billion in a debt offering to further increase the company’s balance sheet.