Coinbase Global Inc COIN announced in a blog post the company is not launching its crypto lending product.
The product was intended to pay users interest for lending out their tokens, according to Coinbase. It would have let users earn 4% by lending their tokens.
“Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world. As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch,” Coinbase said in the blog post.
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The Securities and Exchange Commission has threatened to sue the firm if it plans to launch the program.
The SEC has said Lend would violate longstanding securities regulations, pointing to U.S. Supreme Court cases as precedent.
Coinbase said in its blog, “We had hundreds of thousands of customers from across the country sign up, and we want to thank you all for your interest. We will not stop looking for ways to bring innovatively, trusted programs and products to our customers.”
This development comes after SEC Chairman Gary Gensler told the U.S. Senate the SEC intends to carry out greater regulatory scrutiny of stablecoins and the majority of the tokens listed on cryptocurrency exchanges, which are securities.
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