Coinbase, Kraken and Gemini Urge U.S. Senators to Revise Token Listing Rule

Coinbase, Kraken and Gemini warned U.S. senators that a market structure bill clause on tokens “readily susceptible to manipulation” could effectively block compliant listings of many small-cap assets.

Summary

Coinbase, Kraken and Gemini urged U.S. senators to strike a provision from the Digital Asset Market Structure Bill that would bar exchanges from listing tokens deemed “readily susceptible to manipulation.” The exchanges warned the clause would effectively prevent compliant platforms from listing many lower-liquidity small-cap tokens, raising concerns that regulated venues could face severe limits on market access for emerging digital assets. The dispute reflects a broader debate over how lawmakers should address investor protection and manipulation risk without making token listing standards unworkable for lawful crypto exchanges.

Terms & Concepts
  • Digital Asset Market Structure Bill: A proposed U.S. legislative framework that would establish rules for crypto asset markets and the oversight of trading platforms.
  • Market manipulation: Conduct intended to distort an asset’s price or trading activity, a key concern for financial regulators and trading venues.
  • Small-cap tokens: Crypto assets with relatively low market capitalization, which often trade with lower liquidity and can be more volatile.