8 Sept 2021
Coinbase Being Sued by SEC over Crypto Program
The Index Today
Coinbase Global Inc has been threatened with legal action from The U.S Securities and Exchange Commission SEC if it continues to launch its crypto asset program. This program is designed to allow users to earn interest by lending crypto assets.
The U.S Securities and Exchange Commission SEC has already issued a wells notice to Coinbase which is confirm they will be suing the company in court. Coinbase is expected to delay its launch till October at the very least.
Cryptocurrency lending programs are gaining popularity around the globe. However, regulators have come forward with concerns about the program and existing securities laws. Cryptocurrency platform BlockFi Inc was ordered to stop offering its interest accounts which previously raised $14.7 billion.
Paul Grewal, chief legal officer said that SEC’s concerns regarding Coinbase were due to the fact that regulators believed it involved a security. Paul went on to say that this was not the case.