Cryptocurrency exchange Coinbase has announced it has decided not to launch the USDC APY program revealed earlier this year. The exchange said in an announcement it has also discontinued the waitlist for the program. Coinbase has not clarified why exactly it decided to abandon plans for its cryptocurrency lending program.
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As part of the program, the exchange offered its clients to earn up to 4% APY on the USD coin (USDC) stablecoin. However, after revealing the new product, Coinbase faced pressure from the US Securities and Exchange Commission (SEC). The agency — according to the exchange — threatened to sue Coinbase without telling why.
"They [SEC] also asked for the name and contact information of every single person on our Lend waitlist. We have not agreed to provide that because we take a very cautious approach to requests for customers' personal information," the exchange wrote in a blog post.
The move comes after Coinbase filed an application with the National Futures Association (NFA) to register as a futures commission merchant (FCM). In the long run, the move could allow the company to obtain a license from the Commodity Futures Trading Commission (CFTC). Coinbase plans to register the legal entity Coinbase Financial Markets Inc. as a self-regulatory organization, thus meeting the requirements necessary to offer futures trading in the US market.
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