The U.S. crypto exchange Coinbase has finally bowed to the pressure of the United States Security and Exchange Commission, SEC, to stop the Lend product that would provide 4% interest to customers who hold USDC.

According to a statement by the firm, the decision is facilitated by the need to seek regulatory clarity for the crypto industry.

“Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world. As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY,” the statement read.

Coinbase also declared that hundreds of thousands of customers from across the country had signed up for the Lend product.

In the last 24 hours, bitcoin is up by 3.52%, with a current price of $42,306.89 as at the time of writing this. Within 24 hours, bitcoin dropped to $40,267 low and $44,244.90 high. The trading volume of bitcoin in the last 24 hours is $1.91B. The current market capitalization of bitcoin is $796.26B. Currently, $18.82M bitcoins is in circulation.

Stats and Image from Coin Desk

Coinbase had earlier announced in June that it would launch a high-interest product called Lend, where holders can earn up 4% interest, a rate far beyond what the traditional banking system offer.

However, Coinbase announced earlier in September that the SEC has threatened to sue them if they continue with their plans to introduce Lend, stating that it is a securities offering.