The SEC considers Coinbase crypto Yield program as security. Brian Armstrong answers
The SEC considers Coinbase crypto Yield program as security. Brian Armstrong answers
The US Sec has threatened to sue Coinbase because of its crypto yield program and to mark it as securities.
SEC considers the Coinbase return program as security
The CEO of Coinbase, Brian Armstrong, announced today that the cryptocurrency exchange from the US Securities and Exchange Commission (Sec) has been under fire. According to Armstrong, the supervisory authority had threatened to sue the cryptocurrency exchange because of its return program.
The SEC considers the return program as security and that Coinbase did not register with the agency before the introduction. However, Armstrong said that the regulatory authority did not inform the stock exchange as to why the program was a security and no existing guidelines for coin base in relation to its crypto yield program.
6/ You refuse to tell us why you think it is a security, and instead call for a number of records from us (we hold ourselves), require a statement from our employees (we keep ourselves) and then tell us that you will sue when we continue to start without explaining why.
- Brian Armstrong (@Brian_armstrong) 8. September 2021
he added that the crypto exchange informed the US Sec in early this year about the expected start of its coinbase lend program, which should offer users an annual return of 4% for deposits with the USDC stable.
The CEO of Coinbase pointed out that there are numerous trading platforms for cryptocurrencies that currently offer their customers similar credit services. He therefore asked the SEC to create regulatory clarity on this question to ensure that market participants provide the services in accordance with the law.
he added that Coinbase committed himself to follow the law. However, Armstrong complained that the law was sometimes unclear. If the SEC wants to publish guidelines, Coinbase would therefore be happy to follow them and adapt their products to the regulatory requirements.
cryptocurrency market loses over $ 300 billion in 24 hours
The cryptocurrency market has recorded massive losses in the last 24 hours. Yesterday, the entire crypto market capitalization was almost $ 2.4 trillion. However, the market correction yesterday led to the market capitalization sank to the $ 2 trillion brand, which led to a loss of over $ 300 billion in the last 24 hours.
The price of Bitcoin has fallen by almost 9% since yesterday. BTC was traded over 52,000 yesterday, but has lost a large part of its value since then and is now at $ 46,000 per. traded coin. Ether has also fallen by over 10% and is traded around $ 3,400.