US regulators threaten to sue Coinbase over crypto lending program

The US Securities

The US Securities and Exchange Commission (SEC) has warned Coinbase it will sue the crypto exchange if it goes ahead with plans to launch a program allowing users to earn interest on their crypto holdings.

According to Paul Grewal, Coinbase’s chief legal officer, the company received a Wells notice from the commission. “The SEC has told us it wants to sue us over Lend. We have no idea why,” Grewal said in a blog post, adding that the SEC has told Coinbase it considers Lend “to involve a security, but wouldn’t say why or how they’d reached that conclusion.”

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