The largest US cryptocurrency exchange said in a statement that it had made a “difficult decision” to shelve its plans to offer the Lend product “as we continue our work to seek regulatory clarity for the crypto industry as a whole”.
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Coinbase abandons lending product after SEC pushback
Under what is known as the Howey test, the US Supreme Court has ruled that an investment contract exists when “a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party”.
