Michaela
Coinbase users have expressed frustration after the platform announced that it would discontinue offering yields on USD Coin (USDC) due to new European Union Markets in Crypto-Assets (MiCA) regulations.
On November 28, Coinbase informed users via email that it would halt its USDC yield offering on December 1, 2024, due to MiCa regulations on stablecoins. “Users eligible to earn USDC rewards will continue accruing rewards for USDC balances up until November 30,” Coinbase stated.
The EU’s new MiCa regulation aims to create a unified framework for crypto-assets across its member states. Prior to MiCA, inconsistent regulations between countries led to fragmentation. By standardizing these rules, MiCA seeks to foster greater regulatory clarity, improve consistency, and reduce discrepancies across the European crypto landscape.
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Coinbase’s decision will impact customers across the European Economic Area (EEA), which consists of 30 countries.
Crypto companies are required to fully comply with the MiCa regulations by December 30. In contrast, Tether, the issuer of USDT, has announced it will cease support for its euro-pegged token due to the shifting regulatory environment surrounding stablecoins in Europe.
Coinbase Users Are Frustrated
Paul Berg, co-founder and CEO of crypto infrastructure provider Sablier, expressed his frustration over the situation in a sarcastic post on X. “Very grateful to the EU for protecting me against earning a yield on my USDC holdings on Coinbase,” Berg wrote.
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In response to Berg’s sarcastic comments, Ripple Labs’ technology chief David Schwartz criticized its regulatory impact. “It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer,” Schwartz wrote.
However, despite the negative atmosphere, a group of former Binance executives launched a new venture, Schuman Financial, aimed at creating a euro-pegged stablecoin. On November 26, the company announced that its EURØP token would be going live in the coming weeks, marking their entry into the competitive stablecoin market.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
