Agency leaves crypto in a regulatory grey area, threatens political lawsuit
The U.S. Securities and Exchange Commission (SEC) has informed Coinbase that it will sue if the company launches Coinbase Lend, a new product allowing users to lend digital assets. The threat comes amid increased regulatory scrutiny of the crypto industry, despite a lack of guidelines that have left many businesses in a regulatory grey area.
“Vague threats are the wrong way to regulate an emerging space like cryptocurrency,” said Chamber of Progress CEO and Founder Adam Kovacevich. “Most companies want to do the right thing, and Coinbase observed other companies offering crypto lending for years. The SEC should issue proposed rules, seek public comment, and hold all companies to the same standards — not establish standards through threatening political lawsuits.”
Kovacevich also weighed in on Twitter, highlighting the SEC’s failure to create regulatory clarity for the crypto industry.
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