The US Securities and Exchange Commission (SEC) has threatened the largest American crypto exchange Coinbase with a lawsuit. The announcement comes after the company announced the launch of the lending service Lend. The regulator intends to put pressure on the company, believing that the project is aimed at illegal circulation of securities.

The SEC sent an official notice to the exchange, where it announced its intention. Company lawyer Paul Greval said that the company would postpone the launch of its Lend product until at least October. Coinbase chief Brian Armstrong said on his Twitter account that the SEC asked the company to provide additional documentation and employee testimonies after the firm notified the commission of the service’s launch.