Join Our 1,000,000+ Community

Get Ember

more posts

September 25, 2021

Coinbase and the SEC

"Coinbase had originally planned to launch its Lend product to customers later this year. The Lend product would allow customers to earn 4% APY on their USDC deposits sitting with Coinbase custody. The SEC was uncomfortable with Coinbase taking custody and lending out the underlying assets with partners to generate the 4% Yield. There was a public spat between CEO Armstrong and the SEC - where the SEC issued a Wells notice, basically telling Coinbase that if the product launched, the SEC would sue them. After some back and forth, Coinbase has officially dropped the Lend product for the near future.

Why does this matter?

The SEC led by Gary Gensler is focused on regulating the crypto market, that has gone relatively unchecked since inception. Earlier this year, we saw regulators begin reviewing business practices of Blockfi and Celsius, to name a few. The main sticking point is that a 3rd party company is taking assets on behalf of customers and creating a market to earn yield through partners. SEC’s concern - it’s a completely unregulated market where customer funds could be at risk without the proper checks and balances."

-Harsharn Singh, Investment Associate @ Ember Fund

Thank you for reading!

Don't forget to come into the app tomorrow to continue learning about crypto! 

Enjoying Ember?

Don't miss out on our latest posts

November 21, 2023

Introducing Predictions

With predictions, Ember users can wager their earned Sats on the outcomes of current events around sports, celebrities, coin prices, and more.

November 12, 2023

Happy Diwali!

The referral boost was increased by 50% in India! Invite friends to boost your rate to 3 Sat/hr.

November 03, 2023

October Reward Stats

We're thrilled to announce the Ember community's mining & reward stats for the month of October!

Download Ember