Coinbase Gets Wells Notice From the SEC on Its Lend Product

(Bloomberg) — Coinbase Global Inc., the U.S.’s biggest cryptocurrency exchange, has received a Wells notice from the Securities and Exchange Commission, saying the agency will bring an enforcement action if Coinbase launches its Lend product. Lend, which is yet to be launched, would allow consumers to earn interest on their crypto holdings. 

Coinbase is planning to delay the launch of its Lend product at least until October, according to the company. The exchange has been working with the SEC, and asking for feedback on the Lend product, for about six months, Coinbase said on its blog.

In recent months, various state agencies have issued warnings about similar yield-earning accounts from BlockFi Lending LLC. Regulators are considering going after other companies offering such products, Bloomberg reported recently.

Read more: Crypto Accounts Yielding 7% Spur Scrutiny as States Warn of Risk

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