Coinbase users have converted Circle’s nearly $5 billion USDC into fiat amid panic caused by US regulators’ actions. We have compiled for you the status of altcoins sold by Kriptokoin.com users.
SEC pressure caused panic
Pressure from the US Securities and Exchange Commission (SEC) against crypto staking has caused panic in the crypto market. Over the past 24 hours, Coinbase users have converted approximately $5 billion of Circle’s USD Coin (USDC) stablecoins to fiat due to panic caused by US regulators’ actions.
Also, a potential Operation Choke Point type action coordinated by multiple US government agencies is likely within the scope of a plan to cut ties between the crypto industry and the banking industry.
Coinbase processed $5 billion USDC burns in one day
In a tweet on Feb. 10, PeckShieldAlert revealed that over $4.7 billion USDC has been processed by Coinbase in the past 24 hours to be burned in Circle’s USDC Treasury.
Etherscan data revealed that the wallet address is constantly converting USDC stablecoin to fiat. So far, a total of about $5 billion USDC has been sent to be burned in the USDC Treasury.
It shows Coinbase users converting their USDC to fiat amid the panic caused by the US SEC’s regulatory action against crypto staking. The SEC has charged crypto exchange Kraken for offering and selling unregistered securities through its staking-as-a-service program. It resulted in a massive sell-off in the crypto market as the crypto market cap dropped over 4% in the last 24 hours.
Although Coinbase processed large amounts of USDC burns, it received almost the same amount of USDC after printing. Meanwhile, the price of Coinbase (COIN) shares fell 14% to $59.63 on Thursday. In the premarket hours, the price of COIN is down over 1% to trade at $59.
CEO to appeal crypto staking ban
Coinbase CEO Brian Armstrong said on Friday that they will protect Coinbase and its users from mandatory enforcement actions by the US SEC. The SEC has previously attacked Coinbase for listing securities and insider trading lawsuits. The statement stated:
“We will continue to fight for economic freedom (our mission at Coinbase). “Some days, being the most trusted brand in crypto means protecting our customers from the excessive influence of the government.”
Pro-crypto SEC Commissioner Hester Peirce expressed concern about the agency’s bullying actions and lack of regulatory clarity.
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