SEC Probes Coinbase and Circle's USDC Revenue Split Since 2023 Amid Circle's $1.84 Billion Capital Move

The U.S. Securities and Exchange Commission (SEC) has been investigating Coinbase and Circle regarding their revenue-sharing arrangement related to the USD Coin (USDC) since 2023, during Gary Gensler's tenure as SEC Chair. This inquiry has prompted Coinbase to enhance transparency about its dealings with Circle. In a related development, Circle, the issuer of USDC, has transferred $1.84 billion (€1.62 billion) from its Irish subsidiary to a new U.S. entity, as part of preparations for its upcoming initial public offering (IPO). The scrutiny from the SEC and Circle's capital move highlight ongoing regulatory challenges in the cryptocurrency sector.