Coinbase (NASDAQ:COIN) has added Euro Coin (EUROC) as a stablecoin option to its marketplace. Trading availability will commence on February 27, 2023 – “if liquidity conditions are met.”
In a series of Tweets, Coinbase said it was adding support for EUROC with the Experimental label, and some jurisdictions will not be supported with the stablecoin.
Circle Internet Financial, the issuer of USD Coin (USDC), announced last summer that it was launching a fully-reserved, euro-pegged stablecoin from called Euro Coin.
While USDC holds a market cap in the tens of billions, EUROC is still relatively small at around $28 million.
Very very big boost for Euro Coin and on-chain FX, cross border payments and more. Excited to see this @coinbase ! https://t.co/N9tNarT55P
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) February 21, 2023
The addition of EUROC on Coinbase arrives at a challenging time for stablecoins in general as the Securities and Exchange Commission (SEC) is turning up the heat on stablecoins as they believe stablecoins should be regulated like a security – similar to a money market fund.
A Tweet from SEC Commissioner Hester Peirce, a long time supporter of Fintech innovation, recently questioned the Commission’s decision to regulate by enforcement.
Getting lots of questions re stablecoins & SEC: Facts & circumstances of course, but SEC should defer to Congress, which is actively considering the issue. In the meantime, we & other regulators could hold public roundtables. Enforcement actions aren't the way to write the rules.
— Hester Peirce (@HesterPeirce) February 22, 2023
It is widely known that Congress is in the process of crafting stablecoin legislation, but the timing and final wording of any new rules remain unknown.
