The SEC has extensively investigated the revenue-sharing arrangement between Coinbase and Circle concerning the USDC stablecoin. Inquiries began in 2023 and continued into 2025, as documented in official correspondence. The SEC requested clarification on how Coinbase generates revenue from USDC and the formula determining their share. Recent disclosures indicate Coinbase earned $910 million in stablecoin revenue in 2024, a 33% increase from the previous year, utilizing diverse revenue streams amidst reduced trading volumes. Coinbase has been more transparent about its financial relationship with Circle, especially following Coinbase's minority stake acquisition in Circle in August 2023. Efforts to clarify this partnership may reflect broader ambitions as Coinbase aims to enhance its market position against competitors like Tether. Despite SEC scrutiny, Coinbase's legal team confirmed that their previous earnings statements remained unaffected after resolving SEC inquiries. The SEC has also shown openness toward regulatory frameworks that could enable more innovation within the digital asset space, including stablecoins.

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