The U.S. Securities and Exchange Commission sent a legal notice to Coinbase informing the cryptocurrency exchange to expect legal action if Lend, its digital lending product, launches. Lend will allow eligible customers to earn interest by lending select assets on Coinbase, starting with USD Coin. The SEC determined Lend should be subject to regulation under securities laws. Coinbase disputes the claim, Reuters reports, saying that Lend does not qualify as a security because it is not an investment contract or a note and that the SEC has not explained what makes the product a security. Programs that perform the same function as Lend are common, but U.S. regulators are starting to raise concerns about them as calls for oversight of crypto companies rise. Coinbase said it will delay launching Lend until at least October as a result of the SEC’s decision.