SEC Threatens Legal Action Against Coinbase
Paul Grewal, the Coinbase's chief legal officer, revealed in a blog post that the SEC has officially warned Coinbase that it intends to sue the company in court if it launches its upcoming lending program.
Coinbase co-founder and Chief Executive Brian Armstrong disclosed the dispute in a series of tweets late Tuesday. He called the SEC’s actions “sketchy” and “intimidation tactics behind closed doors,” and said other crypto companies are able to offer such programs.
6/ They refuse to tell us why they think it's a security, and instead subpoena a bunch of records from us (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why.
The notice, according to coinbase, is related to the company's plans to allow users on its platform to earn interest by lending their cryptocurrency assets.
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