Coinbase canceled the launch of a high-yield savings product for USDC Coinbase decided not to clash with regulators and canceled the launch of a high-yield savings product for the USDC Stablecoin following an SEC warning.
According to an updated USDC APY article, Coinbase decided late last week to cancel the product launch. Recall that in early September, the SEC warned the cryptocurrency exchange of a possible lawsuit if the company launched a high-yield savings product for USDC. Coinbase does not mention the SEC directly, but notes that it will continue to work to clarify regulatory requirements for the cryptocurrency industry.
“Our goal is to create great products for customers and advance our mission to increase economic freedom in the world. We continue to work on clarifying the regulatory requirements for the cryptocurrency industry as a whole and have made the difficult decision not to launch the USDC APY program. We have also closed the waiting list for this program. Hundreds of thousands of customers from across the country have pre-registered for it, and we want to thank you all for your interest. We will not stop looking for ways to offer our customers innovative, proven programs and products,” the exchange said in a statement.
Following the SEC warning, industry participants began expressing support for Coinbase and urging it to fight back against the regulator. American billionaire Mark Cuban gave some advice to Coinbase CEO Brian Armstrong on how to handle the threat of SEC prosecution and urged the exchange to “go on the offensive” against the regulator. Ripple CEO Brad Garlinghouse also backed Coinbase.
Despite the support, Coinbase probably made the right decision by postponing the launch of a product that has displeased the authorities. How the confrontation with the SEC may turn out has already previously shown the results of the regulator’s lawsuit against Telegram. The exchange Binance also faced regulatory pressure in recent months and decided to engage in a dialogue with the authorities, rather than going on the warpath.