Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Coinbase Falls as SEC Threatens to Sue, Cryptos Retreat Once More

Published 08/09/2021, 14:24
Updated 08/09/2021, 14:24
© Reuters

© Reuters

By Dhirendra Tripathi

Investing.com – Coinbase stock (NASDAQ:COIN) fell 3.6% in Wednesday’s premarket trading as the U.S. Securities and Exchange Commission threatened to sue the company if it goes ahead with its plans to let users earn interest by lending crypto assets.

The latest erosion in prices of cryptos only added to the negative sentiment.

Millions of crypto holders have been lending out their funds to earn returns over the last few years, and Coinbase was about to join that momentum with its own product. But the SEC has checked that move, calling the product a security, according to Coinbase Co-founder and Chief Executive Officer Brian Armstrong, who put out a series of tweets to argue his case against SEC’s preemptive action.

“If you don't want this activity, then simply publish your position, in writing, and enforce it evenly across the industry,” he tweeted while pointing out that plenty of other crypto companies continue to offer the lending feature.

He lamented that the regulator has failed to provide any guidance on the products even as it threatens to take it to court.

The development comes amid another round of heightened news flow around cryptos. Bitcoin (BitfinexUSD) fell below the $44,500-mark today before clawing back to trade above $46,300, down 9%. Ethereum ETH/USD and Cardano ADA/USD traded lower by 9% each. Dogecoin DOGE/USD fell 12%.

The latest slump in cryptos comes after El Salvador became the first country in the world to adopt Bitcoin as its national currency on Wednesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.