The largest cryptocurrency exchange in the United States received a warning from the SEC: Cryptocurrency is prohibited from earning interest!

Coinbase, the largest cryptocurrency exchange in the United States, said it had received a "Wells notice" from the U.S. Securities and Exchange Commission (SEC), warning it that the SEC would take enforcement action if it launched the Lend product.

The product, which has yet to be launched, will allow consumers to earn interest on their cryptocurrency holdings.

Coinbase said it plans to delay the launch of its Lend product until at least October. The company said it has been working with the SEC and seeking feedback on the Lend product for about six months.

In recent months, regulators in several U.S. states have issued warnings about similar products from BlockFi Lending LLC, and there have been recent reports that regulators are considering investigating other companies that offer such products.