The coinbase, the largest US-based exchange, face pushbacks from invalid people after its move to put new borders on fee-free stabelcoin conversions.
After dismissing complaints related to account restrictions and freeze, the decision has also been given rise to concerns about the user trust and centralization.
Is it still crypto? Coinbase sparks anger on USDC ($ 1.00) exit penalty
The Crypto market participants are coming back with a question that they left behind-is the industry different from the traditional finance (Tradfi)?
The coinbase exchange, which has long been touched as an entrance to the decentralized economy, is in the fire after announcing a new fee structure for use.
From August 13, the Executive will offer 0.10% fee on USDC-TO-HUSD conversions except for a 30-day rolling period. The first is $ 5 million fee-free. However, beyond this, the cost comes from heritage banking practices.
Ryan Scene Adams, the host of bankless podcast, wrote, “The bank fees seem like a coinbase again.”
Adams indicate USDC’s pegs against the dollar, but their concerts except the amount. Work is done about Crypto market participant.
If stablecoins mean dollar-equality and friction free, then why should be levied to reach Fiat?
Do you not hate it when you are trying to extract $ 500m and pay $ 50k? 
– Patrick Alzard (@Patcito) August 7, 2025
These frustrations echo a deep restlessness with the Crypto community, where centralized exchanges such as coinbase are gradually adopting systems they were to discharge.
The coinbase says that the fee experiment is “a way to understand better how the fee affects USDC off-ramping,” as the coinbase staff will confirm McComb.
“… We are running a specialist to better understand a specialist how the fee affects USDC of-ramping, spying some competitive fiat to Fiat. The feature is heard and we are all careful monitoring the response.
Despite this, critics see it as a slippery slope, despite the McComb that the coinbase still offers a better deal.
The new USDC rule of the coinbase reinforces old wounds
Nevertheless, reference matters. The fee transformation follows a series of complaints about account ban and frozen withdrawal. Beincrypto reported wider user backlash, with many sudden access locks and poor customer service.
The coinbase replied, by climbing, this Sukount freeze was dropped by 82%, but the trust remains critical. So, which may look modest USDC fee, 0.10%on mass conversions, it hits at a sensitive time.
Institutional and whale users can see it as a violation of Crypto’s main promise for stabeloin liquidity: Financial freedom with middlemen.
This also puts a shadow on the tight relationship of the coinbase with the USDC issuer circle. While the circle promotes the USDC as a neglect, as a low -cost dollar alternative, the fee reduces that story by its greatest distraction platform.
“… When an investment in a Stablecoin issue is to evaluate this: how will they distribute their product?” Bitmex founder Arthur Hayes recently noted in a blog.
Although the Coinbase stressed that it is just a specialist, the work of critics is that if this policy is made, it can normalize fees in wider stabechoin ecosystem.
Such a step will convert USDC into a finished finish product from digital dollars. The next generation Finance Railway Council will have to do what many people who look uncomfortable and like the old.
The post why the USDC fee shift of the coinbase feels that a bank mesh first appeared on the beincto.
