The US Securities and Exchange Commission's (SEC) crackdown on crypto betting has caused panic in the market. In the past 24 hours, Coinbase users have converted nearly $5 billion from stablecoin USD Coin (USDC) Circle to fiat due to the panic caused by the actions of US regulators.
Additionally, Operation Choke Point-type actions coordinated by various U.S. government agencies. possibly under plans to sever ties between the crypto industry and the banking sector.
PeckShieldAlert in a tweet on February 10 revealed that over $4.7 billion USDC has been processed by Coinbase for burning in the USDC Circle Treasury in the past 24 hours.
Etherscan data reveals wallet addresses continuously converting USDC stablecoins to fiat. To date, nearly $5 billion USDC in total has been sent for burning in the USDC Treasury.
It shows Coinbase users converting their USDC to fiat amid the panic caused by the U.S. SEC's regulatory actions. against crypto staking. SEC charges crypto exchange Kraken for unregistered offering and sale of securities through staking program. It resulted in a massive sell-off in the crypto market, with the crypto market cap falling over 4% in the past 24 hours.
While Coinbase processes a large amount of USDC burning, it also receives an almost equal amount of USDC after minting. Meanwhile, Coinbase (COIN) shares fell 14% to $59.63 on Thursday. In pre-market hours, the price of COIN was trading at $59, down over 1%.
Coinbase CEO Brian Armstrong on Friday said they will protect Coinbase and its users from U.S. enforcement actions. SEC. The SEC has previously cracked down on Coinbase for listing securities trading and insider trading cases.
Pro-crypto SEC Commissioner Hester Peirce has voiced her concerns about the agency's crackdown and lack of regulatory clarity.
