That’s how Coinbase CEO Brian Armstrong described the SEC’s latest crypto crackdown. According to Coinbase, the Wall Street regulator has sent the crypto exchange a “Wells notice” regarding its upcoming lending product, Lend.

• Wells notice = a threat to take legal action. In this case, the SEC says they’ll sue Coinbase if and when it launches Lend.
• Lend would let Coinbase users earn interest by lending digital assets (specifically, a stablecoin called USD Coin) to others.

In a blog post and a nowadays-mandatory Twitter thread, Coinbase executives said they don’t understand what grounds the SEC is suing them on, and that the SEC has refused to loop them in…read more.