SEC Investigates DeFi Product Offered By Coinbase

Legal pressure still cannot "let go" Coinbase When SEC has initiated an investigation into the products offered by the exchange to its customers.

Not only being investigated by US securities regulators about the process of listing tokens as securities, exchanges Coinbase also just got caught up in another investigation aimed directly at Staking products and Yield Farming.

Specifically, in the most recent quarterly report recorded a loss of up to $ 1.1 billion, Coinbase said the company has received investigative subpoenas and requests from the U.S. Securities and Exchange Commission (SEC) for documents and information about certain client programs, operations, and existing products. and future plans.

The SEC requirement covers Coinbase's processes for asset listing, classification of certain listed assets, staking products, stablecoins and profitable products on the platform.

It is worth noting that the SEC has threatened to sue Coinbase in 2021 if the exchange continues to launch a lending product called Lend, for cryptocurrency. stablecoins USDC with an interest rate of 4%/year. Under this model, users can earn interest by lending their tokens. Coinbase canceled that project.

Despite the investigation, the company emphasized in its letter to shareholders that the exchange would commit to discussing cooperation with the SEC on assets and regulation.

“As with all regulators around the world, we want to work effectively with the SEC on crypto and securities regulation, and work together with all policymakers to develop a workable regulatory framework for the economy. cryptocurrency aims to address any area of risk, while enabling the development and adoption of digital innovation for the benefit of wider society.”

In related developments, the SEC has taken a different stance in the case against a former Coinbase Product Manager accused of insider trading. However, it can be seen that Coinbase's latest disclosure has emphasized the "heat" that the exchange is facing as a company. cryptocurrency voice of the United States.