Coinbase updated its User Agreement on May 1, 2026 to explicitly permit the transfer of digital assets to third parties under a new 'Secured USDC' feature tied to the Coinbase One Card. Previously, the terms stated assets would not be transferred except as required by law or per user instruction. The updated language now establishes three exceptions: law-mandated transfers, user instructions, and transfers of USDC designated as 'Secured USDC' pursuant to a separate cardholder agreement. Users who designate USDC as secured agree they cannot withdraw or transfer those funds and that Coinbase may follow third-party instructions without further user consent.
Consumers: If you opt into the Secured USDC feature, you lose the ability to withdraw or move that money, and Coinbase can follow orders from a third party without asking you first.
Consumers: Coinbase now has explicit permission to move some of your USDC to a third party if you enroll in their Secured USDC card program.
The updated terms establish a new exception to the prior prohibition on transferring user digital assets. Previously, Coinbase stated it would not transfer assets except as required by law or per user instruction. The revised language now permits Coinbase to transfer USDC designated as 'Secured USDC' to third parties pursuant to a Coinbase One Card cardholder agreement. Users who elect to use this feature agree they will be restricted from withdrawing or transferring the secured portion, and they consent to Coinbase following instructions from a designated secured party without further user approval, even if those instructions conflict with the user's own orders to Coinbase. The full terms of this arrangement are stated to be in Appendix 4, which is not included in this summary.
→ Review Appendix 4 (Coinbase One Card with Security Deposit Cardholder Agreement) before designating any USDC as Secured USDC to understand the withdrawal restrictions and third-party instruction terms.
→ Confirm whether you intend to use the Coinbase One Card Secured USDC feature or prefer to maintain unrestricted withdrawal rights over your assets.
This is the 2nd significant Rights Removal change Coinbase has made since ConductAtlas began monitoring.
ConductAtlas has recorded 3 material changes to this document over 55 days of monitoring (since March 2026). An additional minor or cosmetic changes were excluded.
2 of Coinbase's significant changes have been classified as negative for consumers.
Added explicit authority for Coinbase to transfer USDC to third parties when designated as Secured USDC under a cardholder agreement, overriding the prior prohibition on asset transfers absent law or user instruction.
New provision stating Coinbase may comply with third-party instructions for Secured USDC without user consent and without regard to conflicting user instructions.
New provision establishing that users designated USDC as secured accept restriction from any withdrawals or transfers of that amount.
This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology
Coinbase modified Section 2.7 of its User Agreement to carve out a new exception permitting asset transfers related to a 'Secured USDC' feature. This change introduces conditional asset control restrictions and third-party instruction rights that …
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Unlock the full institutional analysis — InsightConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-001505.
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