United States-based cryptocurrency commutation Coinbase has announced information technology will not be pursuing its Lend crypto lending plan.

In a Sept. 17 update to a web log announcing the program in June, Coinbase hinted at difficulties in regulatory clarity across the crypto industry in its decision to non bring the crypto lending product to the market. According to the exchange, "hundreds of thousands of customers from across the country" had already signed up for Lend, a plan that aimed at offering 4% annual yield returns on deposits of USD Coin (USDC).

The announcement comes less than 2 weeks after the Securities and Exchange Commission, or SEC, threatened Coinbase with legal action if the substitution launched Lend, which it has accounted a security nether its purview. Coinbase master legal officer Paul Grewal later claimed the lending product was non an "investment contract or a note" and questioned the SEC'south decision as lacking clarification. At the fourth dimension, the commutation said it would be pushing the launch of Lend back "until at to the lowest degree Oct."

Related: Regulatory and privacy concerns trail SEC's threat to Coinbase

Coinbase continues to be i of the largest crypto exchanges in the world, with more than $6.3 billion in daily trading book, according to CoinMarketCap. This month, the exchange also announced plans to raise $1.5 billion in a debt offering to further grow the company'due south residuum canvas.