The US Securities and Exchange Commission notifies Coinbase of the crypto asset exchange of the complaint notice, Coinbase is puzzled that 'I do not know the reason'
On September 8, 2021, Brian Armstrong, CEO of Coinbase, a major cryptocurrency exchange, revealed that he received a
The SEC has told us it wants to sue us over Lend. We don't know why. | By Coinbase | Sep, 2021 | The Coinbase Blog
https://blog.coinbase.com/the-sec-has-told-us-it-wants-to-sue-us-over-lend-we-have-no-idea-why-a3a1b6507009
1 / Some really sketchy behavior coming out of the SEC recently.
— Brian Armstrong (@brian_armstrong) September 8, 2021
Story time…
Lend provided by Coinbase is a financial product that promises an annual interest rate of 4% by depositing the crypto asset 'USD coin' backed by US dollars from investors. Regarding Lend, Armstrong explained, 'It is a program in which customers lend USD coins to investors, and there is also a principal guarantee and interest payment obligation,' he explained, and recruited pre-registrants for the October 2021 release. I was in the middle of doing it.
The SEC saw this product as a problem and told Coinbase that 'Lend is a security.' He sent a Wells notice requesting records and testimony from employees, and indicated that he would not refuse the proceedings if he sold Lend.
Armstrong responded by saying, 'Why is the lending program a security?' 'We have been actively consulting with the SEC about Lend for six months and have been providing the necessary information. However, I have not received a clear answer from the SEC. The SEC does not explain what the problem is, 'he said, asking the SEC for a clear answer.
About SEC Armstrong said, 'The goal of SEC is to protect investors and create a fair market. But who and what harm is this case? People are like Lend. We are happy to benefit from a good product, and SEC regulations will do more harm than protection. '
13 / Shutting these down would arguably be harming consumers more than protecting them, and by preventing Coinbase from launching the same thing that other companies already have live, they're creating an unfair market.
— Brian Armstrong (@brian_armstrong) September 8, 2021
'Various crypto exchanges have been offering similar products for years, but only our products have somehow been rejected,' Armstrong said. 'We promise to comply with the law. If the SEC publishes the guidance, it is possible to follow it, 'he said, calling for dialogue with the SEC.
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