Exchange chief Coin Bass says the US Securities and Exchange Commission has threatened to sue them if they add lending to their market. Apparently, the stock exchange commission did not talk about the reasons for this.
to the Report YouToody Brian Armstrong, CEO of Coin Base, tweeted on Wednesday that the US Securities and Exchange Commission had threatened the exchange and said that if lending and interest-bearing facilities were set up, Yield Farming ) Complains about them.
Profit cultivation means injecting liquidity into defy platforms. In this way, the volunteers provide the liquidity needed by the lending platforms or decentralized exchange offices through the liquidity pools and receive a part of the collected fees as a reward.
Coin Bess had previously planned to launch a profit-making crop and was scheduled to reach the final release stage in a few weeks. Users of this new segment could invest in their chosen currencies by borrowing profits and receive investment profits. From the beginning, interest payments were to be made using the USCI only.
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Coin Bess found out after dealing with the stock exchange commission that this new product is considered as an unregistered securities. Armstrong claims that the regulator did not explain to them how it made that decision.
The US Securities and Exchange Commission, meanwhile, has received a number of documents from Coin Bass and asked its employees to testify on some issues.
They did not tell us why they thought it was a securities product, and instead issued subpoenas to get a series of documents, asked our employees to testify, and then said that if we launched this product, they would sue us and give no explanation. They did not comment on this issue.
Stock Exchange Commission alert to Coin Bass
The US Securities and Exchange Commission has now said it will take the exchange to court if Coin Bass launches his profit-making crop.
Paul Grewal, Coin Bess’s legal assistant, said in a statement that the company had received a warning from the stock exchange commission outlining the nature of their allegations.
Grewal added that submitting a written defense to the government agency was futile because the exchange did not know exactly how to deal with the stock exchange commission.
The stock exchange commission has repeatedly asked our industry to contact them. We did that. But all we know today is that without knowing why, we can only eliminate borrowing from the market forever or wait for a lawsuit. [کمیسیون بورس] Let’s be.
Unfair treatment of legislators
Coin Bass is confused because a number of digital currency companies have been offering services such as lending and profit cultivation to their users for years. The company thinks lawmakers treated them unfairly.
“Base’s legal assistant says:
Other digital currency companies have been marketing their lending products for years, and new lending products have been launched recently and last month.
Armstrong said such a move would hurt investors instead of protecting them, as people seemed “too happy” to make a profit from their digital currencies.
He added that if the issue is settled out of court and the stock exchange commission is convicted, the digital currency industry may eventually be able to achieve the legal transparency it wants, forcing the government to provide a clear legal framework for digital currencies.
The chairman of the stock exchange commission does not meet with anyone
According to Armstrong, Gary Gensler, chairman of the US Securities and Exchange Commission, is the only lawmaker who has refused to meet with Coin Bass in Washington since the stock went public in mid-April.
Gensler refused to meet with Armstrong because the chairman of the stock exchange commission did not want to meet with any of the digital currency companies, including the largest US exchange.
In May, Gencler called on the US Congress to help them regulate the legal framework for digital currencies.
Gencler had said at the time:
I think this market, which is worth nearly $ 2 trillion, is one of the things that can benefit by further protecting the rights of investors.
The Exchange Commission is also working to curb the growth of the DeFiC industry, and has recently monitored the decentralized exchange activities of Uniswap.