Coinbase Launches 4% Rewards Program For USDC, Despite SEC Regulatory Challenges

Cryptocurrency exchange Coinbase Global Inc COIN on Friday announced that its global customers can now earn 4% rewards on USD Coin USDC/USD.

The move comes despite the ongoing scrutiny Coinbase faces from the U.S. Securities and Exchange Commission (SEC).

USDC, a stablecoin, is designed to maintain a value pegged to the U.S. dollar, with a 1:1 redeemability rate.

It is supported by reserve assets such as cash, which are held in accounts with U.S.-regulated financial institutions. With a circulating supply of $28.2 billion, USDC stands as the second-largest U.S. dollar-pegged stablecoin, closely trailing Tether’s USDT.

Coinbase stated that its new offering will enable users to conveniently venture into the cryptocurrency ecosystem and with USDC, customers can swiftly execute trades, earn yields in decentralized finance (DeFi), and even purchase non-fungible tokens (NFTs).

Read Next: Crypto Giant Binance's U.S. Arm Faces Layoffs Amid Regulatory Showdown

Moreover, the rewards program is intended to encourage users to expand their funds while deliberating over their next investment move.

"The rewards rate is subject to change and can vary. Customers will be able to see the latest applicable rates directly within their accounts," the company stated.

The development is particularly striking in light of its recent clashes with the SEC.

Coinbase has been under the microscope of the regulator, which has raised concerns over specific products, like the lending feature that the exchange wanted to launch.
The SEC regarded the lending feature as a security product, thereby subjecting it to specific regulations, which Coinbase contested.

The company has argued that the lending feature should not be classified under securities.

Read Next: Users Want Transparency From Binance, Kraken And Bitget After FTX Collapse: Nansen

Photo: Shutterstock