Coinbase says SEC threatened lawsuit over Lend feature

Illustration by Alex Castro / The Verge

Cryptocurrency exchange Coinbase seems to have some issues with the Securities and Exchange Commission (SEC) over a planned feature that lets people lend cryptocurrency through its platform. In a Medium post on Tuesday, Coinbase’s chief legal officer wrote that the regulatory agency threatened to sue the company if it launched the feature. Coinbase’s CEO posted a Twitter thread on Tuesday evening saying that the SEC wasn’t clear about what it wanted.

According to Coinbase’s CEO, Brian Armstrong, the company told the SEC about its new Lend feature as a courtesy but didn’t anticipate pushback, based on his impression that similar features exist on other platforms. However, according to Armstrong, the SEC informed the company that the lend...

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