Coinbase doubles USDC rewards to 4% amid SEC scrutiny on staking services

Coinbase said in a June 15 tweet that it now offers 4% rewards on USDC.

Coinbase’s newly increased reward rate means that the company has approximately doubled its previously offered returns on USD Coin (USDC).

As recently as June 9, the company’s website said that customers could only earn 2% on USDC purchased or held in a Coinbase account.

Coinbase said today that reward rates are subject to change and noted that the most up-to-date rates can be viewed within customer accounts. The company has not added the 4% reward rate to the latest version of its public USDC page.

The reward program’s requirements — such as eligible regions, minimal USDC balances, and account requirements — can be viewed on Coinbase’s help pages.

USDC rewards not named in SEC case

Recently, the SEC charged Coinbase and alleged that several of its activities violate securities offerings. In one charge, it said that Coinbase’s staking service, which allows users to earn interest on cryptocurrency, constitutes an unregistered securities offering.

Coinbase’s page distances USDC rewards from the targeted services, stating: “You cannot stake USDC, but … may be eligible to earn rewards on USDC.”

Though the SEC did not target the company’s USDC reward program in its latest case, the regulator prevented Coinbase from launching its similar Lend program in 2021. That program would have seen Coinbase lend out users’ USDC in order to provide rewards to users; it incidentally intended to offer 4% APY interest as well.

However, Coinbase finances its USDC rewards program with its own funds. Coinbase is a member of the CENTRE consortium, which is responsible for USDC.

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