Coinbase decided to cancel its cryptocurrency lending program shortly after the U.S. Securities and Exchange Commission (SEC) decided to go after the digital asset firm.
Coinbase has announced that its USDC lending plan will not be available to customers despite previous launch plans. Coinbase wanted to make it possible to earn interest on some cryptocurrencies, starting with the stablecoin USC Coin, but the company revealed the cancellation by re-headlining and updating a blog post originally published in June.
Coinbase blog writes:
“we are not launching the USDC APY program. As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program. We have also discontinued the waitlist for this program as we turn our work to what comes next.”
As reported by TheCryptoBasic, CEO Brian Armstrong publicly revealed that the U.S. Securities and Exchange Commission had threatened the exchange with a lawsuit for the yet-to-launch lending product.
Coinbase criticized the SEC for refusing to disclose why it believed the yield program was a unregistered security.
Armstrong also noted that the lending products had been around for years, implying that Coinbase was subject to unnecessary scrutiny by the regulator.
However, those who expected to see a showdown between the largest cryptocurrency exchange in the United States and the securities watchdog will be disappointed as the Coinbase is no more launching a lending product.
Coinbase $1.36M Contract With U.S. Homeland Security
On the other side, The Immigration and Customs Enforcement branch of the US Department of Homeland Security awarded a $1.36 million contract to Coinbase for “business applications” and “application development software.” , according to the Federal Procurement Data System.
The new deal is Coinbase largest federal contract yet. The deal was signed on Thursday and is worth about forty times more than Coinbase last contract with the Homeland Security branch.