Breaking: In 24 Hours, Coinbase Users Convert More Than $5 Bn USDC to Fiat
Panic in the crypto market has been caused by the U.S. Securities and Exchange Commission’s (SEC) crackdown on crypto staking. Coinbase users have converted almost $5 billion of Circle’s USD Coin stablecoin (USDC) to fiat in the last 24 hours due to panic caused primarily by US regulators.
A plan to cut ties between crypto industry and banking sector is also possible under Operation Choke Point-type coordination by multiple U.S. government agency.
Coinbase Processed $5 billion USDC Burn in One Day
PeckShieldAlert tweeted on February 10 that Coinbase had processed over $4.7 billion USDC for burning at Circle’s USDC Treasury.
Etherscan data showed that the wallet address is constantly converting USDC stablecoin into fiat. Up to now, $5 billion USDC has been sent to the USDC Treasury.
It is clear that Coinbase users are now converting their USDC into fiat in the midst of panic from the U.S. SEC regulatory actions against crypto staking. The SEC filed charges against Kraken, a crypto exchange, for the unregistered sale and offer of securities through its staking as-a-service program. The result was a huge selloff in crypto markets, with the crypto market cap dropping over 4% within the last 24 hours.
Coinbase received almost the same amount of USDC after minting, despite burning huge amounts of USDC.
Coinbase (COIN), shares prices fell 14% to $59.63 Thursday. The COIN price was trading at $59 in the pre-market hours. This is a decrease of over 1%.
Coinbase CEO to Contest Crypto Staking Ban
Brian Armstrong, CEO of Coinbase, stated that they will protect Coinbase’s users from the U.S. SEC’s forced enforcement actions. Coinbase was previously attacked by the SEC for listing securities and insider trading cases.
“We will continue fighting for economic freedom (our mission here at Coinbase). Being the most trusted brand of crypto means protecting our customers against government overreach.
Hester Peirce, a pro-crypto SEC commissioner, has voiced concerns about the agency’s high-handed actions and lack of regulatory clarity.
Also read: US SEC Crypto Staking Crackdown benefits Decentralized Services, Here’s how
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