Coinbase, the largest cryptocurrency exchange in the US, said it had received a "Wells notice" from the Securities and Exchange Commission (SEC) warning that SEC would take enforcement action if it launched Lend products. The product, which has not yet been launched, will allow consumers to earn interest on cryptocurrencies they hold.
Coinbase said it plans to delay the launch of Lend products until at least October. The company said it had been working with SEC for about six months to solicit feedback on Lend products
In recent months, regulators in several US states have issued warnings about similar BlockFi Lending LLC products. There have been recent reports that regulators are considering investigating other companies that offer such products.