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Coinbase Can't Pay You Interest But They Can Charge you Interest

ds_mustang

Libertarian, Capitalist, Software guy
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Back in September Coinbase was about to open a service to pay customers for their crypto deposits. It was basically a high interest product on your crypto balance, better than anything a bank offers in interest. The SEC threatened Coinbase and made them shut it down.


Now Coinbase is opening a product where you can borrow cash against your crypto for an 8% APR fee. That apparently is not a problem.

So paying interest to people on their crypto is stopped by the SEC but helping people go into debt using their crypto as collateral and charging them interest for it is fine and dandy. This is the country we live in now, controlled by banks shamelessly manipulating the system for the benefit of banks and to everyone else's detriment.