For a publicly-traded company, Coinbase has been facing too many technical difficulties.
During bitcoin’s 10% selloff, which extended into the broader cryptocurrencies, the company had reportedly faced outages. Or, at the very least, technical issues on the platform.
People are reporting that they cannot execute transactions or complete transfers.
The website has yet to issue an update on the situation.
Meanwhile, Coinbase is potentially coming to blows with the Securities and Exchange Commission (SEC). Bloomberg has the story:
Coinbase Global Inc. was warned by the Securities and Exchange Commission against launching a product that would allow consumers to earn interest on their crypto holdings.
The U.S.’s biggest cryptocurrency exchange said it received a Wells notice saying the agency will bring an enforcement action if the company goes ahead with its Lend product. Coinbase expressed surprise at the SEC’s move, in a blog post, adding it plans to delay the launch at least until October.
“The SEC has told us it wants to sue us over Lend. We have no idea why,” the post written by Chief Legal Officer Paul Grewal is titled. It goes on to say the SEC has told Coinbase it considers Lend “to involve a security, but wouldn’t say why or how they’d reached that conclusion.”
The agency has said it’s assessing Lend through Supreme Court cases called Howey from 1946 and Reves from 1990, Grewal said, adding that formal guidance about how the SEC plans to apply those tests to such products would be helpful.
“They’ve offered us the chance to submit a written defense of Lend, but that would be futile when we don’t know the reasons behind the SEC’s concerns,” Grewal continued.
It should be interesting during the Wednesday trading session!
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