SEC and Coinbase have been locking horns for some while now. They have had opposing views on the new Lend option that Coinbase will be introducing shortly and the SEC is not pleased. This option lets users lend their digital assets and get 4% interest in return.
The regulator has threatened to sue Coinbase if they go ahead with the launch of their Lend program in America. Brian Armstrong expressed his dismay on Twitter in a flurry of tweets targeting the SEC. He also said that this was a direct threat from the SEC and how Coinbase has complied with all their demands till now.
The Cryptocurrency community came to his aid while blasting the recent decisions of the SEC. This can be seen as underhanded and many people are already targeting the SEC of bad practices. They have virtually forced Coinbase to push the launch to at least October.
Alex Mahinsky said that Coinbase has been providing yields on digital assets like ETH and would like to expand into the USDC coin deposits too. He says that they will have to wait and watch this situation as they are trying to come to good terms with the SEC.
Celsius, a firm that has upwards of 20 billion dollars in assets, already pays the yields on USDC to its non-accredited investors. This is why Mahinsky is hopeful that the SEC will cooperate. The online community has already called out the double standards and the irrational demand of the SEC to have access to all audio and video recordings of all the internal meetings.