Coinbase CEO expresses concerns over SEC treatment on long Twitter thread
The United States Securities and Exchange Commission warned Coinbase (NASDAQ: COIN) that it could face a legal challenge if it launched its digital asset lending service project.
In addition, the regulator has issued subpoenas to the crypto exchange to obtain additional information.
In a detailed Twitter thread, the CEO of Coinbase disclosed his take on Coinbase shares while also presenting his company’s stool in terms of position.
“They refuse to give their opinion in writing to the industry on what should be allowed and why, and instead engage in intimidation tactics behind closed doors,” he wrote. “Whatever their theory here, it sounds like access / land grabbing compared to other regulators.”
The tool in question, named Lend, is designed to allow Coinbase customers to earn interest on specific digital assets.
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Paul Grewal, chief legal officer of Coinbase, said he called the Lend product safe “but would not say why or how they came to that conclusion.”
The Nasdaq-listed crypto exchange announced in June that it would launch the product.
The SEC responded by opening an investigation into the exchange and sending it subpoenas, Grewal said.
“Despite Coinbase keeping Lend out of the market and providing detailed information, the SEC still doesn’t explain why it sees a problem,” Grewal said. “On the contrary, they have now told us that if we launch Lend, they intend to continue.”
The Coinbase share price closed down 4.18% on Tuesday.