Coinbase CEO Brian Armstrong has reacted strongly to the company’s current relationship with the U.S. Securities and Exchange Commission. According to him, the SEC is threatening to sue the cryptocurrency exchange if it launches its yield-generating product called Coinbase Lend.
With this new product, Coinbase wants to compete with popular decentralized finance (DeFi) products, such as Compound and Aave. The company wants to operate a lending pool focused on USD Coin (USDC), a stablecoin that is pegged to USD.
If the company manages to launch Coinbase Lend, users will be able to contribute to the lending pool by sending crypto assets to Coinbase Lend. Eventually, the company plans to