Coinbase CEO Calls for Token Listing Overhaul Amidst Rapid Growth

Coinbase CEO Brian Armstrong has called for a significant overhaul of the token listing process, citing the exponential growth in new token creation. In a recent post on X, Armstrong noted that the current process, which involves manual evaluation of each token, is no longer feasible given the sheer volume of new tokens being created.

Armstrong proposed a shift from an "allow list" to a "block list" approach, utilizing customer reviews and automated scans of on-chain data to help users navigate the vast array of tokens. This approach would require regulators to adopt a more pragmatic stance, he said.

Coinbase's current listing process involves a multi-step approach, including an initial review, due diligence, and regulatory compliance checks. However, the company has faced criticism for its listing policies. Justin Sun, founder of Tron, took a jab at Coinbase, noting that Tron (TRX), one of the top 10 cryptocurrencies by market cap, has been under review for seven years without being listed.

Sun also alleged that Coinbase demanded $330 million in fees to list TRX, including 500 million TRX tokens worth $80 million at the time and a $250 million Bitcoin deposit to be held in Coinbase Custody. Meanwhile, Ansem, a pseudonymous crypto influencer, suggested that Coinbase hire someone with hands-on experience in the industry to streamline token evaluations.

Armstrong also revealed Coinbase's plans to deepen integration with decentralized exchanges (DEXs), envisioning a future where customers "shouldn’t need to know or care whether the trade is happening on a DEX or CEX [centralized exchange]." This comes amid hopes for friendlier crypto regulation in the US under President Donald Trump's new administration.