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ARTICLE · 15 OCTOBER 2021

Market Intelligence Thought Leadership Award Winner

The Challenges Of Regulating Cryptocurrency And Decentralized Finance

As the world of cryptocurrency and decentralized finance (DeFi) rapidly develops, tensions and debates between financial regulators and the cryptocurrency community continue to gain relevance.

CanadaTechnology

INTRODUCTION

As the world of cryptocurrency and decentralized finance (DeFi) rapidly develops, tensions and debates between financial regulators and the cryptocurrency community continue to gain relevance. These tensions flared up recently in the United States after the cryptocurrency exchange platform Coinbase Global Inc. (Coinbase) canceled its anticipated peer-to-peer crypto lending program called "Lend". Coinbase reported that the SEC issued a Wells notice, threatening to bring an enforcement action against the company if they launched Lend as they deemed the product to be dealing securities. Coinbase further alleged that the SEC did not provide an explanation as to how it had determined that the Lend program involves securities or identify any specific concerns with the Lend program.

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