Coinbase, the renowned digital currency exchange, has declared a twofold increase in its rewards for USD Coin (USDC) holders. The company made this announcement via a social media post on June 15, 2023, as reported by CryptoSlate.
Previously, Coinbase customers who bought or stored USDC in their accounts were eligible for a 2% reward. Now, with the reward rate soaring to 4%, customers stand to reap double the benefits. However, Coinbase has cautioned that these rates are not set in stone and may vary. For the most recent rates, customers are advised to check their individual accounts.
For those curious about the specifics of the reward program, such as the regions that qualify, the minimum USDC balance required, and the account prerequisites, Coinbase’s help pages provide all the necessary details.
In the backdrop of recent legal challenges, it’s important to highlight that the SEC’s recent case against Coinbase did not involve the USDC rewards program. The SEC had accused Coinbase of breaching securities offerings with its staking service, which was seen as an unregistered securities offering.
Coinbase, however, has drawn a clear line between the USDC rewards and the services under the SEC’s scrutiny, stating that while USDC cannot be staked, customers may still qualify to earn rewards on it.
In 2021, the SEC had put a stop to Coinbase’s plans to launch a similar initiative called “Lend,” which aimed to offer a 4% APY interest by lending out users’ USDC. Unlike the Lend program, the funding for the USDC rewards program comes directly from Coinbase’s own coffers.