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.
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%.
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.
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