The American Securities and Exchange Commission has flexed its muscles: Contrary to plan, the largest American crypto exchange Coinbase will not offer any loans.
This was preceded by a lengthy dispute, which was carried on with great rigor.
But let's start at the beginning: Coinbase originally planned a crypto credit function. The whole thing should be called "Lend" and already exists in a similar form. This would enable users to lend their own cryptocurrencies back to the stock exchange, albeit at significantly higher interest rates than, for example, with savings accounts. Coinbase itself spoke of 4 percent and wanted to limit it to the stablecoin USD coin, which is pegged to the dollar. The stock exchange supervisors didn't like it at all, and they threatened to sue Coinbase.
The listed company did not understand this and published a post on the blog: “The SEC has told us that they want to sue us. And we don't know why. "Now Coinbase is publishing an update on the plans and thus a rejection of the product:" While we are continuing our work to create regulatory clarity for the crypto industry as a whole, we have made the difficult decision not to use the program to start."