In a series of tweets, CEO Brian Armstrong said the U.S. Securities and Exchange Commission threatened to sue the company if it proceeded with the planned launch of its Lend product, which would offer customers a fixed yield on their cryptocurrencies. Coinbase’s chief legal officer, Paul Grewal, wrote in a blog post that the company has been in talks with the SEC about the product for six months. (The Logic)

Talking point: Armstrong’s public airing of grievances comes as crypto businesses find themselves increasingly at odds with regulators and lawmakers. A controversial section of the Senate’s US$1-trillion infrastructure bill in August galvanized the industry and led to a delay in the bill’s passage; meanwhile, the SEC is reportedly investigating the company behind Uniswap Labs, one of the most influential decentralized finance platforms. Business leaders in Canada, where regulators have recently cracked down on unlicensed crypto exchanges, have also taken note of the developments. Responding to Armstrong’s comments, alongside Shopify CEO Tobi Lutke, Wealthsimple CEO Michael Katchen said Canada has an opportunity “to lead on regulatory innovation and set the standard for crypto.”