If you didn’t know yet, the SEC wants to sue Coinbase for offering people a 4% interest rate on their stablecoins. This is should not be the SEC’s business whether or not Coinbase offers more interest rate than the banks since they are a private company.
This is just another way for the SEC to save the banks from competition. Banks currently offer terrible interest rates compared to Crypto. This is just basic capitalism. If you can’t offer decent interest rates compared to your competitors, you deserve to lose out on customers. Yet they are trying to save their ass by directly attacking Coinbase.
The average bank interest rate for interest checking accounts in the United States is 0.03%. Coinbase plans to offer their customers 4%. The banks know that Coinbase is giving them a run for their money. Them trying to sue Coinbase is pure stupid. In my opinion, as a private company, Coinbase holds the right to offer their customers whatever interest rate they want.
The feds should not oppress a private company from their rights to provide their customers financial service. They are going after Coinbase since they know they can’t do shit against Cryptocurrencies that offer high interest rates directly. Coinbase should definitely fight this in the court. The SEC has no business trying to sue a private company for offering tough competition.
TLDR: Coinbase is a private company and holds the right to offer whatever interest they want. The SEC is being total bullshit and just wants to save the banks from the competition from Crypto.
EDIT: Apparently, Coinbase is no longer a private company unfortunately. However my point is still there. The SEC doesn’t have any business attacking a company that is just offering financial service superior to their competitors (Banks). It’s publicly traded, but still a private company as it is not owned by the government.