This Week in Startups Coinbase battles SEC over Lend + How DeFi interest rates work with Genesis’ Matt Ballensweig | E1279
Sep 9, 2021
Matt Ballensweig, the Head of Institutional Lending at Genesis, dives into the heat of Coinbase's regulatory battle with the SEC over its LEND product. He highlights the complexities of DeFi lending and how institutional lenders shape the crypto landscape. The discussion touches on the stability of stablecoins like USDC amid market risks and the importance of due diligence for retail investors. Matt also emphasizes the need for regulatory oversight to protect those venturing into the evolving crypto world while gently reminding startups of the value of innovation.
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Coinbase vs. SEC
- Brian Armstrong criticized the SEC's unclear guidance on Coinbase's Lend product.
- He called out their "intimidation tactics" and refusal to meet.
Crypto Lending Explained
- Crypto lending involves users lending assets for interest, similar to margin loans.
- It allows crypto holders to earn returns without selling their assets.
Crypto Lending Advice
- Understand the loan structure and who is borrowing your crypto.
- Assess the risks before lending your crypto for interest.