Coinbase, a leading cryptocurrency exchange in the United States, has made a significant policy change by introducing commission fees for large-scale swap transactions from USDC to USD. Starting February 5th, conversions exceeding $75 million in a 30-day period will incur fees, although Tier 1 and Tier 2 members of the Coinbase Exchange Liquidity Program are exempt from this new rule.
The fee structure is tiered based on the monthly volume of transactions. For amounts between $75 million and $150 million, a fee of 0.10% is charged, while volumes between $150 million and $500 million incur a 0.15% fee. Transactions above $500 million will be subject to a 0.20% fee. These fees are directly deducted from the conversion amount from USDC to USD.
The net conversion for fee assessment purposes is determined by the difference between the total USDC to USD and USD to USDC conversions over the last 30 days. This move reflects Coinbase’s ongoing adjustments to its business model in response to market dynamics.
Coinbase’s Market Influence and Legal Challenges
Amid these changes, Coinbase remains a prominent supporter of the cryptocurrency industry in the U.S., actively engaging with regulatory proposals and advocating for the sector. Its nonprofit, Stand with Crypto, tracks crypto-friendly lawmakers, with 18 Senators currently identified as supporters.
Coinbase is also engaged in a legal dispute with the SEC, which filed a lawsuit against the exchange alleging securities law violations. Despite this, analysts believe there is a substantial chance the case will be dismissed. The company’s stock has faced challenges, with a downgrade from JPMorgan and a significant drop in price, reflecting the broader volatility in the crypto market.