Ripple is already on troubling grounds with SEC as the lawsuit is going on, and despite a very well depicted defense set up by Ripple, there is still no clear outcome as to who might win. It is as if the case is being stretched thin by the courts as long as they could, and this doesn’t sit well with Ripple trying to stabilize its operation within the US.
On the other hand, Coinbase seems to be on the wrong side of SEC as it has recently launched a product called Lend that is paying high interest to those who are willing to stake their savings within the project, and the initial figure of profit is about 4%. SEC doesn’t seem to like the idea and has issued a severe warning to Coinbase over this issue, and according to how the eye of the storm looks, if Coinbase doesn’t back down, then SEC, without any hesitation, is willing to sue.
SEC Needs To Be More Transparent With Their Crypto Policies
It seems like Coinbase has got the full attention of SEC at the moment even there are other exchanges out there offering similar products, but it is the Coinbase that happens to be on the other end of the regulation arrow about to leave the SEC’s bow. If SEC does go for Coinbase, then it seems that other exchanges would have to clean their act to stop SEC trailing and eventually hunting them down.
The issue is not as simple as one might think, and it is definitely not as simple as SEC requesting an exchange to drop a product and the exchange doing it for the commission. Brian Armstrong, the CEO of Coinbase, thinks that SEC is not transparent with Coinbase with regards to their latest product which is a high-interest product.
Coinbase has been consulting with SEC all this time, and still, SEC is hiding away policies and other things from Coinbase, which doesn’t look much like cooperating with the other party. If these hard blows from SEC continue, then Brian has decided to take this thing to court and then deuce it out with SEC out there. Coinbase is being approached by Ripple in the light of offering any support that the exchange requires during these difficult times against this trouble from the SEC.