In the clash between the Securities and Exchange Commission (SEC) and Coinbase, it seems that some parties are already celebrating a small victory.
The latest report revealed Coinbase had to cancel the launch of the USD Coin (USDC) stablecoin loan program, realizing their position was threatened under the agency’s attention:
"We have made a difficult decision not to launch the USDC APY program in the legal ambiguity of the crypto industry," - Coinbase's official statement on Friday, September 17.
Following this sad news, thousands of Coinbase users have had to wait for other efforts and innovations that will be introduced by the platform later on.
The Coinbase situation raises various questions among the crypto community as the firm is not the first to introduce such a program. Gemini is one of the platforms that from the beginning offered the product.
Perhaps it stems from Coinbase’s desire to offer its users to stake USDC with an annualized profit (APY) of 4%.
The SEC sees this agenda as a loss on the part of investors as it has the potential to lose their assets to Coinbase and its partners, thus involving the protectionist aspect.
No matter what happens, Coinbase continues to introduce its latest product into the market, a crypto brokerage to institutional investors known as Prime on September 20th. The product is said to have attracted 9,000 professional investment firms.
