you sure about that? i've seen cases where paxos made KYC demands and closed accounts over attempted PAX redemption, but never about coinbase with USDC.
people talk a lot of smack about coinbase, but their document requirements seem pretty lax. other than ID and selfie, i've never been asked for anything else. no social security number, no proof of residence, no KYC questionnaires. the ID i have on file with them is also expired.
i assume if you're flagged for suspicious activity or want to go over the $10k daily withdrawal limit, there are more requirements. but i've been there over 2 years, moved low six figures aggregated through my account, never had a problem.
Is it not possible that Coinbase just shut you down rather than bothering to get a bit more info? I really can't remember anyone noting demands for extra information like Bitstamp and others. You might trigger something and then it's goodnight no matter what.
Gemini have refused redemptions on their stablecoin to preserve their Coinmarketcap position or something and that seems like one of the reasons Paxos messed with redemptions too. Why anyone should be inconvenienced for irrelevant shit like that is beyond me.