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Evan Van Ness, the Founder of WeekInEthereumNews suggested that the SEC US is reasonable regarding Coinbase launching lending products. In accordance with what Ness revealed regarding the rumors about the commissioner going after BlockFi, which is acting as an unlicensed hedge fund.
Evan Van Ness of WeekInEthereumNews Suggests Why SEC is Stopping Coinbase
Brian Armstrong, the CEO of Coinbase revealed the complicated communication process of the company with the Securities and Exchange Commission (SEC), regarding the new lending products that the company has planned to launch this year.
According to Coinbase, the regulator has also asked the company to reveal all potential customer data in order to take action legally in the country. In order to do that, Coinbase will have to put in place mandatory KYC for all of its users on both current and future platforms and products.
Evan Van Ness of WeekInEthereumNews said that Commissioners are still acting similar to regulators who are just not ready to understand what and why they are taxing or prohibiting.
Earlier, it was reported that the SEC was linking centralized lending and perpetual futures with unreasonably high leverage options to the Defi industry.
This clearly shows the presence of uncertainty of the commission in terms of regulating the industry.
SEC Going After BlockFi
The Securities and Exchange Commission is going after BlockFi, so it can not disclose the exact reason behind the limitation of the activity of Coinbase in the Defi industry.
BlockFi is also a financial services company that is developing various cryptocurrency investment solutions for private investors like interest-earning accounts, USD loans backed by crypto, and non-existent fee trading.
In addition to this, it should be noted that the company has officially mentioned on its website that BlockFi is looking forward to operating with the United States regulators and laws.