Coinbase Introduces Conversion Fees for USDC to USD Trades Exceeding $75 Million
Coinbase, the leading cryptocurrency exchange in the United States, is implementing conversion fees for USDC to USD trades exceeding $75 million per month.
Clients will be charged 0.10% for a monthly volume between $75 and $150 million, 0.15% for a volume between $150 and $500 million, and 0.20% for a volume exceeding $500 million.
An exception is provided for level 1 and 2 members of Coinbase’s Liquidity Program.
Context and Implications of the New Fees
On January 30th, Coinbase unveiled this new fee structure on their help page, with effect from February 5th. These fees will be directly deducted from the amount of the USDC to USD conversion. This decision reflects a shift in handling large-scale transactions on the platform.
Current Situation and Challenges for Coinbase
Despite recent downgrades by JPMorgan analysts and a decline in its stock price, Coinbase remains a major player in advocating for the crypto market in the United States. The exchange recently responded to the U.S. Treasury Department’s proposal to strengthen surveillance on crypto mixers, calling it a ‘waste of time’.
Coinbase’s nonprofit organization, Stand with Crypto, actively monitors the stance of U.S. lawmakers on cryptocurrencies, identifying up to 18 crypto-friendly senators. Additionally, Coinbase is engaged in a legal battle against the SEC, which filed a lawsuit against the company in June 2023 for alleged violations of federal securities laws. Analysts predict that Coinbase has a 70% chance of obtaining a complete dismissal of the lawsuit.
