The SEC views Coinbases’ Crypto Yield program as security. Brian Armstrong responds

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The US SEC has threatened to sue Coinbase for its crypto yield program, calling it safe.

SEC views Coinbases return program as security

Coinbase CEO Brian Armstrong revealed earlier today that the cryptocurrency exchange has been criticized by the United States Securities and Exchange Commission (SEC). According to Armstrong, the regulator had threatened to sue the cryptocurrency exchange for its yield program.

The SEC considers the yield program to be security and that Coinbase did not register with the agency before launching it. However, Armstrong said the regulator failed to explain to the exchange why the program was a security and did not clarify any existing guidelines for Coinbase to follow regarding its crypto yield program.

He added that the crypto exchange informed the US SEC earlier this year of the planned launch of its Coinbase Lend program which intends to offer users an annual return of 4% on deposits made with the USDC. stablecoin.

The CEO of Coinbase pointed out that there are many cryptocurrency trading platforms that currently offer similar lending services to their customers. He therefore urged the SEC to clarify the regulations on the matter in order to ensure that market players provide the services in accordance with the law.

He added that Coinbase is committed to following the law. However, Armstrong lamented that sometimes the law is unclear. Therefore, if the SEC wishes to issue any guidance, Coinbase would be happy to follow it and tailor its products in accordance with regulatory requirements.

Cryptocurrency Market Loses Over $ 300 Billion In 24 Hours

The cryptocurrency market has seen massive losses over the past 24 hours. The crypto’s total market cap yesterday was close to $ 2.4 trillion. However, yesterday’s market correction saw the market cap drop to $ 2 trillion, causing a loss of over $ 300 billion in the past 24 hours.

BTC / USD chart. Source: FXEMPIRE

The price of Bitcoin has fallen almost 9% since yesterday. BTC was trading above $ 52,000 yesterday but has since lost much of its value and is now trading at $ 46,000 per coin. Ether is also down over 10% and is trading around $ 3,400.

The story continues

This article originally appeared on FX Empire

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