The cryptocurrency company said it will not proceed with the planned launch of a lending product that would have given customers a fixed yield on their holdings of USD Coin, a stablecoin pegged to the U.S. dollar. (The Logic)

Talking point: Coinbase’s decision shows that even the largest crypto companies aren’t ready to challenge regulators, even as they argue that securities laws are outdated when it comes to cryptocurrencies. A provocative tweetstorm by Coinbase CEO Brian Armstrong earlier this month revealed that the U.S. Securities and Exchange Commission had threatened to sue the company if it proceeded with Lend, which the SEC said is a security, and therefore would be subject to additional oversight requirements. Coinbase may have decided that launching the product wasn’t worth challenging the SEC’s interpretation of securities laws, even though Armstrong had previously alluded to the possibility of a court battle that could settle the issue. Meanwhile, Coinbase is providing services to another U.S. federal agency, Immigration and Customs Enforcement, having secured a contract that could be worth up to US$1.36 million.