The securities and exchange commission of the United States recently made massive threats to sue a renowned crypto exchange. For those who are wondering, this crypto exchange happens to be the one and only, Coinbase. If any of you reading this have been following crypto related news for a while, you will know that coinbase is arguably one of the best exchanges out there. Thousands of people have made investments in it and there is a good chance that there will be more to come.
Unfortunately, however, this exchange has become a part of controversy and many people are afraid that it could damage its reputation. A variety of reputable resources claim that coinbase could be in the danger of getting sued by the securities and exchange commission of the United States. While the SEC has not taken any action, it did threaten Coinbase with the intent of suing them eventually.
For those who are wondering about it, there could be many reasons why coinbase is in danger of getting sued. However, one of the main reasons is that it intended to kick start a program in order to let users earn a large amount of interest through the lending of crypto based assets. People were baffled when they heard this news and thought that there could be more than what meets the eye.
There has been a lot of activity going around ever since the securities and exchange commission issued the warning regarding coinbase. One of the higher ups of the company stated that the crypto exchange organization intends to delay the introduction of the very new product they were about to launch. According to multiple sources, the product was known as “lend” and it was planned to be launched during this month.
Now, however, there has been a massive change in plans with people stating that this product will not be launched before October. Some people have even gone as far as stating that the launch might be delayed to the end of October. Whatever the case, it goes without saying that things are not looking so great for coinbase. Suing a platform takes can spell disaster for them and a great deal of measures should be taken in order to control the damage.
However, one might wonder how much damage these threats to sue coinbase would make. Unfortunately, there is no clear answer to this as it entirely depends on how serious the SEC is about suing the crypto exchange. Needless to say, resolving this issue may take some time, but seeing coinbase’s excellent reputation, things will work out well for both of the parties.