“The SEC has told us it wants to sue us over Lend. We have no idea why,” wrote the company’s Chief Legal Officer Paul Grewal. He added that the SEC has told Coinbase it considers Lend “to involve a security, but wouldn’t say why or how they’d reached that conclusion.”
Armstrong echoed that sentiment. “They responded by telling us this lend feature is a security. OK - seems strange, how can lending be a security?” he wrote on Twitter.
Coinbase said it’s not planning to launch Lend until at least October as a result of the SEC’s actions.
This article was provided by Bloomberg News.