Cryptocurrency exchange Coinbase is facing legal action from the regulator, as the US Securities and Exchange Committee warned the firm it will sue if a proposed lending product is launched.
In a blog post, Coinbase's chief legal officer Paul Grewal said the firm had received a Wells notice from the regulator, stating it would pursue legal action against it if a yield product called Lend was brought to market. The issue stems from whether or not Lend, which is intended to allow users to earn interest on digital assets on the Coinbase platform, is considered an investment contract, which would make it a security under federal law. FCA warns on UK crypto use increase despite gaps in understanding Chief executive of Coinbase Brian Armstrong expressed his dismay at the cur...
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