Does the SEC Have a Case Against Coinbase?
Coinbase (NASDAQ: COIN) has been planning to launch a lending product called Coinbase Lend for months. The company would take users' cryptocurrency deposits and lend them out to borrowers, collateralizing their loans with other currencies such as Bitcoin. Depositors would earn interest on their holdings from the loans.
There's just one hiccup. Coinbase shared that the SEC had issued a Wells notice (an intent to sue) to the company over the Coinbase Lend program, alleging the product constitutes a security and needs to register as such.
Coinbase thinks the SEC is way off base, and management hasn't been afraid to let the public know as much. Chief Legal Officer Paul Grewal published a blog post, and CEO Brian Armstrong let loose on Twitter.
Source Fool.com
