Coinbase, a renowned U.S.-based cryptocurrency exchange platform, has announced its intention to implement commission fees for significant conversions from USD Coin (USDC) to US dollars. These fees will affect monthly volumes exceeding $75 million, although members enrolled in Tier 1 and Tier 2 of the Coinbase Exchange Liquidity Program will be exempt from these charges.

The new policy was communicated through the Coinbase help page on January 30, and it will take effect from February 5. Commission fees will be levied on net conversions from USDC to U.S. dollars exceeding $75 million within a rolling 30-day period.

Customers should expect a fee of 0.10% for monthly volumes ranging between $75 and $150 million. For volumes between $150 and $500 million, a fee of 0.15% will apply, while any amounts exceeding $500 million will incur a fee of 0.20%. These fees will be directly deducted from the converted amount of USDC to U.S. dollars.

The concept of net conversion, as defined by Coinbase, involves subtracting the total volume of U.S. dollars converted to USDC from the total conversions of USDC to U.S. dollars conducted over a 30-day period.

In other developments, analysts at JPMorgan downgraded Coinbase’s stock to an underweight rating on January 23, citing the decline in Bitcoin prices. By January 25, the company’s stock value plummeted to a monthly low of $121, marking an almost 20% decrease since the beginning of January.

Despite these challenges, Coinbase remains a staunch supporter of the U.S. crypto market. Recently, the company opposed the U.S. Treasury Department’s proposal to increase scrutiny on crypto mixers, dismissing it as “a waste of time”. Additionally, Coinbase’s nonprofit advocacy group, Stand with Crypto, has been actively monitoring U.S. lawmakers' attitudes towards cryptocurrencies, reporting that up to 18 senators hold favorable views towards crypto.

Furthermore, Coinbase is currently entangled in a legal dispute with the U.S. Securities and Exchange Commission (SEC), which alleges violations of federal securities laws. However, industry analysts are optimistic, giving Coinbase a 70% chance of the lawsuit being fully dismissed.