Coinbase says it has put on hold plans to launch a relatively high-yield stablecoin savings product due to regulatory concerns.
The cryptocurrency exchange says regulatory uncertainty motivated the decision to scrap the program, which would have generated 4% annual percentage yield (APY) on Coinbase’s dollar-pegged stablecoin USD Coin (USDC).ADVERTISEMENT
“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 the USDC APY program announced below.”
Coinbase, which had a waitlist of potential investors for the product, says hundreds of thousands had shown interest.
“We have also discontinued the waitlist for this program as we turn our work to what comes next. We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest.”
The crypto exchange’s decision to drop the high-yielding stablecoin savings program comes less than two weeks after Coinbase CEO Brian Armstrong revealed that the U.S. Securities and Exchange Commission (SEC) had threatened to sue over the USDC APY program after deeming it a security.
Armstrong added that the SEC had refused to provide regulatory guidance in writing and accused the regulator of “engaging in intimidation tactics behind closed doors.”
“We’re being threatened with legal action before a single bit of actual guidance has been given to the industry on these products.
If we end up in court, we may finally get the regulatory clarity the SEC refuses to provide. But regulation by litigation should be the last resort for the SEC, not the first.”
Coinbase exchange publish its proposed regulatory framework for US authorities
- Coinbase exchange makes good on its promise, publishes proposed regulatory framework for govt.
- The proposal is to make the public engage in conversation and spark debate, Coinbase says.
- Coinbase call for one regulator to improve innovation in crypto space.
Top American crypto firm, Coinbase exchange has published a Digital Asset Policy Proposal: Safeguarding America’s Financial Leadership (dApp) which provides a conceptual framework for justification and comprehensive regulation of digital assets in the US.
Coinbase exchange published the proposed framework after Brian Armstrong, the CEO of Coinbase, alleged that the United States Securities and Exchange Commission threatened to sue his company if they offered a crypto yield program that the SEC considers a security. The crypto firm experienced firsthand the lack of regulatory clarity.
During an interview with TechCrunch, Armstrong also said that Coinbase exchange wants to be an advisor and a helpful advocate for how the US can create that sensible regulation.
Faryar Shirzad, Coinbase chief policy officer who authored the proposal, wrote that the goal of Coinbase’s proposal is to “engage in the public conversation about the future of our financial system.” The company believes that the conversation should focus on “The blockchain-driven and decentralized evolution of the internet” and “The emergence of a distinctive asset class that is digitally native and empowers unique economic use cases.”
Coinbase exchange proposed regulatory framework
It broke down the approach down to a new framework of four pillars; regulate digital assets under a separate framework, designate one regulator for digital asset markets, protect and empower holders of digital assets and promote interoperability and fair competition.
The proposal also contained the benefits of the emerging system of digital finance for both consumers (democratization of financial markets) and regulators (more transparency and new ways to combat illegal activity).
Coinbase noted that laws drafted in the 1930s are a poor foundation for regulating the internet-native asset class and that forcing digital assets into the legal framework developed before the computer age could lead to stifling crypto innovation in the US.
Notably, Coinbase asked for only one regulator to avoid fragmented and inconsistent regulatory oversight of the innovative space. Coinbase suggested instilling consumer confidence “by providing robust customer protection.” Shirzad noted, “This can be achieved through enhanced transparency processes, including tailored disclosures to inform purchasers of digital assets.”
In conclusion, Coinbase exchange called for feedback on its proposal, noting that its communication lines are open for further debate.
Coinbase Adds Support for Two Ethereum-Based Altcoins Across All of Its Platforms
Top US crypto giant Coinbase is adding two Ethereum (ETH) powered altcoins to its arsenal of tokens.
After their initial launch on Coinbase Pro, BadgerDAO (BADGER) and Rarible (RARI) are now available to buy, sell, convert, store, send and receive on the company’s retail trading platform Coinbase.com and its iOS and Android applications.
BADGER is a decentralized autonomous organization (DAO) with the purpose of building infrastructure and products that help spur Bitcoin’s growth as a usable asset across other blockchains.
At time of writing its BADGER governance token is trading at $28.47, down by 7.5% on the day according to CoinGecko.
RARI is the token that powers digital artist and creator community-owned non-fungible token (NFT) marketplace Rarible.
Rarible is a non-custodial platform, meaning users always have control over their tokens, which are not held by Rarible. So far, the Rarible marketplace only supports Ethereum-based cryptos.
At time of writing, RARI is trading at $23.49, down 4.6% on the day according to CoinGecko.
Both altcoins recently surged in price after they were added to Coinbase’s professional trading platform.
Coinbase Pro lists two new altcoins and prices soar
Coinbase Pro, the trading platform for the largest US cryptocurrency broker, Coinbase.com, listed two more altcoins on Wednesday (13), Rarible (RARI) and BadgerDAO (BADGER). Both cryptocurrencies had a high after the announcement, with emphasis on RARI, which is already with a gain above 40% in the last hours, according to data from Coinmarketcap. See the performance of altcoins.
Before being announced by Coinbase, the RARI token had already gone through a high of about 30%, almost hitting the $23 mark last Monday. After listing, altcoin progressed to $27.59, the week’s highest value so far. At the time of writing, RARI is trading at approximately $27, which has risen in the last 24 hours by around 40%.
As described by Coinbase, the altcoin Rarible is also a token issued on the Ethereum blockchain, whose function is to feed its platform of the same name. It is a network that allows you to create, receive and market NFTs
BADGER, which had been gaining price since the beginning of the month, started to be worth more after listing on Coinbase. On Wednesday night, the currency reached US$40, but there was a correction and on this Thursday afternoon it is traded in the range of US$35, with an increase of approximately 13% in the last 24 hours. The cryptocurrency, however, is still far from reaching its highest price, which was US$ 85 in February this year.
BadgerDAO is a token issued on the Ethereum network that powers its autonomous decentralized organization of the same name. DAO is focused on bringing Bitcoin to the decentralized finance (DeFi) ecosystem in Ethereum and other blockchains, explains Coinbase.