Coinbase Rethinks Token Listings as 1M New Tokens Weekly Break Current System

CN
2 days ago

Coinbase CEO Brian Armstrong has called for significant changes to the platform’s token listing process, responding to the rapid pace of token creation in the cryptocurrency space. In a post on social media platform X on Jan. 25, Armstrong revealed:

We need to rethink our listing process at Coinbase given there are ~1m tokens a week being created now, and growing. High quality problem to have, but evaluating each one by one is no longer feasible.

His comments underline the mounting difficulties of managing an increasingly vast and dynamic market.

Armstrong also highlighted regulatory obstacles, emphasizing that the current framework for approving individual tokens is unsustainable. He stated: “Regulators need to understand that applying for approval for each one is totally infeasible at this point as well (they can’t do 1m a week).” To address this, Armstrong proposed shifting from the existing “allow list” model to a “block list” approach that focuses on excluding problematic tokens.

The Coinbase chief executive described:

It needs to move from an allow list to a block list, and utilize customer reviews/automated scans of onchain data etc to help customers sift through.

Beyond token evaluation, Armstrong also pointed to plans for expanding the integration of decentralized exchange (DEX) technology within Coinbase. He stated: “We’ll continue integrating native DEX support more deeply. Customers shouldn’t need to know or care whether the trade is happening on a DEX or CEX.” This reflects Coinbase’s goal of creating a more seamless experience for users, merging the benefits of centralized and decentralized trading platforms. Armstrong’s post underscores the challenges faced by exchanges in adapting to the explosive growth of the cryptocurrency market, while also calling for innovation and collaboration to address regulatory and operational demands.

The U.S. regulatory landscape for cryptocurrency is undergoing significant changes. On Jan. 23, President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology,” aiming to bolster U.S. leadership in digital assets while promoting innovation and protecting economic liberty. Simultaneously, the U.S. Securities and Exchange Commission (SEC) has established a task force, led by Commissioner Hester Peirce, to provide clearer regulatory guidance for digital assets. Trump has also appointed Caroline Pham as acting chair of the Commodity Futures Trading Commission (CFTC) to improve oversight of digital assets. Additionally, the appointment of a “crypto czar” reflects a growing emphasis on coordinating crypto policy across multiple agencies, signifying a more unified regulatory approach for the industry.

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