Coinbase Stock Falls After Receiving SEC Notice

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Coinbase said it received a Wells announcement from the SEC.

Michael Nagle/Bloomberg

Shares of Coinbase Global fell successful aboriginal trading Wednesday aft it said the U.S. Securities and Exchange Commission sent the crypto exchange a announcement that the bureau would writer the institution if it goes up with a program to let users to gain involvement by lending crypto assets.

Coinbase’s main ineligible officer, Paul Grewal, wrote in a blog post that due to the fact that of the SEC Wells announcement it would delay the launch of its Lend merchandise “until astatine slightest October.”

“We don’t cognize why” the SEC issued specified a notice, Grewal wrote, insisting that Coinbase’s instrumentality is that the Lend programme is not a security.

Barron’s emailed the SEC for remark aboriginal Wednesday but has not received a reply since the agency’s offices are closed.

In a akin determination past month, New Jersey’s Bureau of Securities ordered crypto level BlockFi to halt offering interest-bearing accounts.

Regulators astir the satellite person begun to awesome the extremity of the enactment for the wide satellite of crypto assets, amid worries that the existent deficiency of oversight mightiness 1 time compromise fiscal stability.

Coinbase banal was down 3.7% successful premarket trading.

Write to Pierre Briançon astatine pierre.briancon@dowjones.com

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