The US Securities and Exchange Commission’s (SEC) crackdown on crypto strikes has created panic in the crypto market. In the past 24 hours, Coinbase users converted nearly $5 billion worth of Circle’s USD Coin (USDC) stablecoin to fiat due to panic caused by actions by US regulators.

Furthermore, a possible Operation Choke Point-type action, coordinated by multiple US government agencies, is likely a plan to sever ties between the crypto industry and the banking sector.

Coinbase processed $5 billion USDC burns in a day

PeckShieldAlert in a tweet on Feb. 10 revealed that more than $4.7 billion USDC has been processed by Coinbase for burning at Circle’s USDC Treasury in the past 24 hours.

Etherscan data revealed that the wallet address continuously converts USDC stablecoin to fiat. To date, a total of nearly $5 billion USDC has been sent to the USDC treasury for incineration.

It indicates that Coinbase users are converting their USDC to fiat amid the panic caused by the US SEC’s regulatory action against crypto staking. The SEC charged the crypto exchange Kraken for the unregistered offering and sale of securities through its staking-as-a-service program. It resulted in a massive sell-off in the crypto market, with the crypto market cap falling by more than 4% in the past 24 hours.

While Coinbase processed massive amounts of USDC burns, it also received almost the same amount of USDC after minting.

Meanwhile, Coinbase’s (COIN) share price fell 14% to $59.63 on Thursday. In pre-market hours, the COIN price is trading at $59, down more than 1%.

Coinbase CEO to contest crypto strike ban

Coinbase CEO Brian Armstrong said on Friday that they will protect Coinbase and its users from the US SEC’s forced enforcement actions. The SEC has previously attacked Coinbase for securities listing and insider trading.

“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 government overreach.”

Pro-crypto SEC Commissioner Hester Peirce has expressed concern over the agency’s arbitrary action and lack of regulatory clarity.

Also Read: US SEC Crypto Staking Crackdown Benefits Decentralized Services, Here’s How

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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