Coinbase adds approximately 0.5% to the price of every crypto transaction as a built-in markup called a 'spread,' separate from any other fees you see. This spread can change based on market conditions and is not capped.
The provision was narrowed from covering all cryptocurrency purchases and sales to specifically conversions, and simplified the explanation of spread variability from market fluctuations to market conditions; severity downgraded from high to medium.
View full change record →Consumers pay an invisible markup of approximately 0.5% on every cryptocurrency purchase or conversion, and this percentage can increase during volatile market conditions without a defined maximum, meaning actual costs are unpredictable.
Cross-platform context
See how other platforms handle Spread Fee on Conversions and similar clauses.
Compare across platforms →The spread is a hidden cost embedded in the quoted price, meaning you pay more than the real market price for crypto without necessarily seeing this charge as a line item.
REGULATORY FRAMEWORK: This provision implicates Dodd-Frank Act Section 1032 (12 U.S.C. § 5532) requiring clear and conspicuous disclosure of costs and risks to consumers of financial products; FTC Act Section 5 (15 U.S.C. § 45) prohibiting unfair or deceptive acts or practices, specifically the FTC's enforcement guidance on drip pricing and hidden fees; CFPB UDAAP authority under Dodd-Frank Section 1031; and for EU users, MiCA Regulation (EU) 2023/1114 Article 7 requiring transparent cost disclosure. The CFPB and FTC share enforcement authority in consumer financial contexts.
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