Coinbase — the largest United States-based crypto exchange — has introduced commission fees for net conversions from USD Coin to U.S. dollars exceeding $75 million in 30 days. An exception will be made for Tier 1 and Tier 2 Coinbase Exchange Liquidity Program members.
The announcement appeared on the Coinbase help page on Jan. 30. According to the page, from Feb. 5, Coinbase will begin imposing a fee on USD Coin (USDC) to U.S. dollar net conversions over $75 million in a rolling 30-day period.
Customers will pay 0.10% for a monthly volume between $75 million and $150 million. The fee for transaction volume between $150 million and $500 million will be 0.15%, and the maximum rate of 0.20% will be applied to volume exceeding $500 million. All fees will be assessed directly from the USDC to U.S. dollar conversion amount.
As explained by Coinbase in the announcement, net conversion is calculated by subtracting the total U.S. dollar to USDC conversion volume from the total USDC to U.S. dollar conversion volume over a 30 day period.
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On Jan.23, JPMorgan analysts downgraded Coinbase’s stock to an underweight rating, citing the falling price of Bitcoin (BTC) and listing shares of spot BTC exchange-traded funds. On Jan. 25, the company’s stock price reached a monthly low of $121. It sits at $132.82 at the time of writing, almost 20% lower than at the beginning of January.
Nevertheless, the exchange remains one of the principal advocates for the crypto market in the United States. On Jan. 22, Coinbase publicly replied to the U.S. Treasury Department’s Financial Crimes Enforcement Network’s proposition to tighten the scrutiny over crypto mixers, calling it “a waste of time.”
Coinbase’s nonprofit advocacy organization, Stand with Crypto, has been actively tracking the crypto stance among U.S. lawmakers, and it recently estimated up to 18 crypto-friendly senators.
The company is also leading its own legal battle against the U.S. Securities and Exchange Commission. The SEC filed a lawsuit against Coinbase on June 6, 2023, alleging the crypto exchange violated federal securities laws. However, according to analysts, Coinbase has a 70% chance of securing a complete dismissal of the lawsuit.