Coinbase decided not to conflict with regulators and canceled the launch of a high-yield savings product for the USDC stablecoin after a warning from the SEC.
Coinbase made the decision to cancel the product launch late last week, according to an updated USDC APY article. Recall that in early September, the SEC warned the cryptocurrency exchange about a possible lawsuit in the event the company launched a high-yield savings product for the USDC. Coinbase does not mention the SEC directly, but notes that it will continue to work on clarifying regulatory requirements for the cryptocurrency industry.
“Our goal is to create great products for customers and advance our mission to increase economic freedom in the world. We continue to work on clarifying the regulatory requirements for the cryptocurrency industry as a whole and have made the difficult decision not to launch the USDC APY program. We have also closed the waiting list for this program. Hundreds of thousands of customers from all over the country have pre-registered for it, and we want to thank you all for your interest. We will not stop looking for ways to offer our customers innovative, proven programs and products, ”the exchange said in a statement.
Following the SEC’s warning, industry members began to express support for Coinbase and urge it to fight back against the regulator. American billionaire Mark Cuban gave some advice to Coinbase CEO Brian Armstrong on how to deal with the threat of SEC prosecution and urged the exchange to “go on the offensive” against the regulator. Ripple CEO Brad Garlinghouse also backed Coinbase.
Despite the support, Coinbase probably made the right decision by postponing the launch of the product, which is causing dissatisfaction with the authorities. What the confrontation with the SEC can turn out to be has already been shown earlier by the results of the regulator’s litigation against Telegram. The Binance exchange has also faced regulatory pressure in recent months and has decided to go into dialogue with the authorities rather than go on the warpath.