24/7 Cryptocurrency News

Breaking: Coinbase Users Converts Over $5 Bn USDC To Fiat In 24Hrs, Here’s Why

Coinbase's users converted nearly $5 billion of Circle's USD Coin (USDC) stablecoin to fiat due to panic caused by actions of US regulators.
Published by
Breaking: Coinbase Users Converts Over $5 Bn USDC To Fiat In 24Hrs, Here’s Why

The U.S. Securities and Exchange Commission (SEC) crackdown against crypto staking has caused panic in the crypto market. In the last 24 hours, Coinbase users have converted nearly $5 billion of Circle’s USD Coin (USDC) stablecoin to fiat due to panic caused by actions of US regulators.

Moreover, a potential Operation Choke Point-type action coordinated by multiple U.S. government agencies is likely under a plan to cut ties between the crypto industry and the banking sector.

Advertisement

Coinbase Processed $5 Billion USDC Burn in a Day

PeckShieldAlert in a tweet on February 10 revealed that over $4.7 billion USDC was processed by Coinbase for burning at Circle’s USDC Treasury in the last 24 hours.

Etherscan data revealed the wallet address is continuously converting USDC stablecoin to fiat. Until now, nearly $5 billion USDC in total have been sent for burning at the USDC Treasury.

It indicates Coinbase users are converting their USDC to fiat amid the panic caused by the U.S. SEC regulatory action against crypto staking. The SEC charged the crypto exchange Kraken for the unregistered offer and sale of securities through its staking-as-a-service program. It resulted in a massive selloff in the crypto market, with the crypto market cap falling over 4% in the last 24 hours.

Although Coinbase processed huge amounts of USDC burn, it also received nearly the same amount of USDC after minting.

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

Advertisement

Coinbase CEO To Contest Crypto Staking Ban

Coinbase CEO Brian Armstrong on Friday said they will protect Coinbase and its users from U.S. SEC’s forced enforcement actions. The SEC has earlier attacked Coinbase for listing securities and insider trading cases.

“We will keep fighting 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 voiced her concerns about the agency’s high-handed action and the lack of regulatory clarity.

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

Advertisement

Share
Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”

The Ethereum price and BMNR stock have recorded modest gains thanks to BitMine’s recent $1…

October 2, 2025
  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025
  • 24/7 Cryptocurrency News

Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million…

October 2, 2025
  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025