According to its volume for the first quarter, Coinbase would have generated $117 million in total transaction income in April at its standard charge rate of 168 basis points, or 1.68 percentage points. Further Coinbase news, instead revealed that it made $110 million in April.
The American cryptocurrency exchange Coinbase yields USDC stablecoins for its international users. However, the action coincides with a legal action brought by American banking regulators who want to outlaw such services.
The SEC must understand that it has specific restrictions on its ability to regulate digital assets and that a “regulatory gap” needs to be closed by Congress. Grewal stressed the significance of openly addressing these constraints and comprehending how decentralized exchanges (DEX) and conventional exchanges differ.
It is anticipated that the SEC will review its proposal and consult with stakeholders to better understand the decentralized Bitcoin market in light of the concerns expressed by Coinbase. Finding solutions safeguarding investors and encouraging innovation in this quickly expanding area requires constructive communication between the industry and the regulator.
Establishing clear and balanced laws that permit the market’s healthy development while avoiding undue barriers to innovation is essential as the cryptocurrency industry continues to develop. To help the regulator create a regulatory environment that is efficient and advantageous for all parties concerned, Coinbase and other businesses in the sector should continue to interact with the regulator actively.
Global Coinbase clients can now receive 4% rewards on Circle’s USDC stablecoin, the business said on June 16. Circle actively promotes the adoption of USDC because it is a Coinbase partner.
The rewards rate is variable and subject to change, according to Coinbase. It further stated that users of its global exchange would have access to the most recent rates immediately from their accounts.
The company’s FAQ page states that qualifying clients in the United States could receive USDC incentives.
The 4% income is significantly higher than the meager 0.4% national average for savings accounts set by the Federal Deposit Insurance Corporation (FDIC). However, a number of American banks are now providing interest rates higher than 4% due to multiple rate increases by the Federal Reserve.
However, because the SEC views the assets as securities, Coinbase has already been troubled by regulators for its yield products.
In other Coinbase news, the SEC warned the company in September 2021 regarding its Lend products, which allowed clients to earn interest on their cryptocurrency holdings.
The SEC has also taken action against staking services that target several American exchanges, including Kraken, which was compelled to stop offering to stake.
The regulator sued the company because it had broken the securities laws. Coinbase has consistently asked for regulatory clarity, but Gary Gensler, the chair of the SEC, and his enforcement personnel are not cooperating.
In other Coinbase news, the supply of the USDC has decreased to a 22-month low of 28.2 billion. Its supply has decreased by 36% this year as its market share has fallen to 22%. On the other hand, this week saw a record-breaking increase in Tether supply of more than 83 billion USD.