(PYMNTS) - The U.S. Securities and Exchange Commission (SEC) was the only government agency that declined to meet with Coinbase, CEO Brian Armstrong said on a business show on Friday (Sept. 24).
Armstrong told Anthony Pompliano’s Best Business Show that while he was in Washington, D.C. following Coinbase’s April stock market debut, the SEC was the “only regulator” that declined to meet with the cryptocurrency exchange platform.
“I reached out to the SEC. I tried to get a meeting with them. They told me that they weren’t meeting with any crypto companies,” Armstrong said.
He added that he was surprised by the SEC’s response since every other regulator and government branch “has been willing to meet with us.”
Coinbase was threatened with an SEC lawsuit over Coinbase Lend, the exchanges proposed lending unit. The company instituted a waiting list for the new product while asking the watchdog for guidance.
Armstrong said Coinbase Lend was a USDC lending program that offered 4% annual yields. He pointed out that other firms were already offering similar products. However, he alleges that the SEC refused to give the service a go-ahead, and instead initiated legal action without offering any explanation.
“How are they protecting consumers in this case? I think a lot of consumers demonstrably have wanted to earn higher yields on their savings accounts. They’re not really getting those products from the existing financial services,” Armstrong said on the show, which runs daily on YouTube from 11 a.m. to 1 p.m. EST.
Coinbase considered taking the SEC to court, Armstrong said, but decided against it, since “there’s a lot of deference given to regulators in the court system,” and it would be a long legal battle.
The crypto exchange decided to instead drop plans for its lending product until regulations surrounding digital currencies is clearer.
By PYMNTS
September 24, 2021
