The Nasdaq-listed cryptocurrency exchange Coinbase has scrapped plans to launch a nding issue after the US Securities and Exchange Commission (SEC) threatened to sue the company.
Coinbase nding will not launch the program
Coinbase announced Friday that it has decided not to launch the ndon program. Exchange wrote:
Our goal is to create great products for our customers and advance our mission to increase economic freedom in the world. As we continue our work to fully seek regulatory transparency for the crypto industry, we have made the difficult decision not to launch the USDC APY program.
“We have also closed the waiting list for this program as we move our work forward. Millions of customers from all over our country signed up and we want to thank you for your interest. We will not stop looking for innovative, trusted programs and products for our customers, ”added Coinbase.
Coinbase unveiled a program in June where users could “earn interest in USD currency (USDC) at a rate more than 50x the national average of a thrift savings account.” The program advertises that users can earn 4% APY and is “Principal Guaranteed.”
However, Coinbase revealed in early September that the SEC had sent Wales a notice to the company regarding its plans. “The SEC has told us that they want to sue us. We don’t know why, ”he said. “The SEC told us they thought ndan was involved in security, but would not say why or how they came to this conclusion.”
Meanwhile, Coinbase is growing its business in some other way. Last week, the company applied to the National Futures Association (NFA) for futures and derivatives trading on its platform. Coinbase is raising 2 billion by selling bonds. In addition, the exchange announced Monday that Coinbase Prime, a broad platform for institutional investors, is being launched with update capabilities.
What do you think about Coinbase abandoning plans to launch a nding fundraising program? Let us know in the comments section below.
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