Coinbase Announces 4% Crypto Returns For Its Users

Coinbase, a big company for trading cryptocurrencies, said it will now give a 4% return to customers who hold USDC, a type of cryptocurrency. This is a big jump from the earlier 2% return.

Coinbase stated that these return rates can change. It assured customers that they can see the newest rates in their accounts.

This new plan comes at a time when Coinbase is having problems with the U.S. Securities and Exchange Commission (SEC). The SEC is a part of the U.S. government that makes rules for companies like Coinbase. The SEC is saying that Coinbase broke some laws.

In response, Coinbase said that customers cannot stake (which is like investing) USDC, but customers in certain areas can earn returns. It wanted to make clear that this rewards program is different from the services the SEC is questioning.

Last year, Coinbase planned to give a 4% yearly return on USDC deposits through a program called Lend, but had to cancel it because the SEC threatened to sue them.

The company says it uses its own money for the USDC rewards and will not lend or use the assets without permission from the users.

USDC is the second-largest cryptocurrency that is tied to the value of the U.S. dollar. Tether's USDT is the largest. There are $28.2 billion worth of USDC in circulation.