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Coinbase announces the end of its USDC yield offerings on Dec. 1 for customers in the European Economic Area as a result of the region’s MiCA stablecoin laws.
In a Nov. 28 email circulating on X, the crypto exchange stated that it “will be sunsetting the USDC Rewards program” on Dec. 1, much to the dismay of impacted customers who have started posting reactions to the email online.
The service will end for all clients based in the European Economic Area, which consists of 30 nations, including 27 EU member states along with Iceland, Norway and Liechtenstein. Crypto.news has reached out to <a rel="noopener noreferrer nofollow" href="https://crypto.news/tag/coinbase/">Coinbase</a> for confirmation of this news but has not received a response.
Though, Coinbase does give clients who are eligible to earn USDC Rewards to accrue rewards for USDC(<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/usd-coin/">USDC</a>) balances until Nov. 30 before the program is due to close. The exchange cites the incoming European Markets in Crypto-Assets or <a rel="noopener noreferrer nofollow" href="https://crypto.news/tag/mica/">MiCA</a> regulation that introduce new requirements for <a rel="noopener noreferrer nofollow" href="https://crypto.news/tag/stablecoin/">stablecoins</a> as the reason behind the abrupt end to the firm’s USDC Rewards for EEA customers.
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 MICA is kicking in -&gt; Sunsetting USDC Rewards in the EU Due to MiCA <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@coinbase</a> <a href="https://twitter.com/circle?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@circle</a> <a rel="noopener noreferrer nofollow" href="https://t.co/8GCGlpt8Xd" target="_blank">pic.twitter.com/8GCGlpt8Xd</a>— Marina Markezic (@MarinaMarkezic) <a href="https://twitter.com/MarinaMarkezic/status/1862161507947286886?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">November 28, 2024</a>
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Co-founder and CEO of token streaming protocol Sablier, Paul Berg, reacted to the email in a recent <a rel="noopener noreferrer nofollow" href="https://x.com/PaulRBerg/status/1862218494672023855" target="_blank">X post</a>, stating sarcastically that he feels “very grateful to the EU” for protecting him against earning yield on USD Coin holdings on Coinbase.
Ripple Labs technology chief David Schwartz responded to Berg’s post, stating that he thought it was ironic that regulations tend to hinder companies from offering services that benefit customers.
“It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer,” said Schwartz in his <a rel="noopener noreferrer nofollow" href="https://x.com/JoelKatz/status/1862329861735686159" target="_blank">post</a>.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/end-of-stablecoins-why-exchanges-are-abandoning-stablecoins-in-eu/"> End of stablecoins? Why exchanges are abandoning stablecoins in EU </a>
MiCA’s stablecoin <a rel="noopener noreferrer nofollow" href="https://crypto.news/mica-winners-and-losers-of-new-eu-crypto-laws/">laws</a>, which were introduced in June 2023, laid out a number of strict regulations and standards for crypto firms and stablecoin issuers to follow if they intend to operate in the EU, one of them is a ban on offering stablecoin interests or what is referred to as “e-money tokens.”
Crypto and stablecoin firms are expected to fully comply with the new MiCA laws by Dec. 30.
As previously <a rel="noopener noreferrer nofollow" href="https://crypto.news/coinbase-to-delist-non-compliant-stablecoins-for-eu-clients-over-mica-rules/">reported</a> by crypto.news in October, Coinbase had announced that it will delist non-compliant stablecoins from its European exchange by the end of this year in response to incoming MiCA regulations. One of the stablecoins due to be delisted is Tether(<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/tether/">USDT</a>).
On Nov. 27, Tether said it will end support for the Euro-pegged stablecoin EURT “until a more risk-averse framework is in place.” Customers with EURT balances on blockchains are given a year-long time frame to redeem their holdings until Nov. 27, 2025.
However, Tether also revealed <a rel="noopener noreferrer nofollow" href="https://crypto.news/tether-to-invest-in-quantoz-to-support-mica-compliant-stablecoins/">plans</a> to invest in Quantoz Payments to support MiCA-compliant stablecoins, EURQ and USDQ.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/tether-to-invest-in-quantoz-to-support-mica-compliant-stablecoins/"> Tether to invest in Quantoz to support MiCA-compliant stablecoins </a>

Coinbase will end USDC Rewards for EU clients due to MiCA

crypto.news

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