Coinbase has abandoned its plans for its Lend service after a high-profile scuffle with the SEC.
Coinbase announced its plans to roll out Lend, a program that would allow users to lend cryptocurrency to others and earn interest on the loan. The SEC took issue with the company’s plans and threatened legal action if it continued. This led Coinbase to engage in what was widely considered an “ill-advised” public war with the SEC, with CEO Brian Armstrong calling the agency’s behavior “sketchy.”
The company has now notified customers via a blog post that it is canceling its Lend plans as a result of the SEC’s actions.
Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world. 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. We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programs and products to our customers.