Coinbase to Suspend Trading for Three Meme Tokens in New York—What It Means

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• Coinbase suspends meme token trading in New York amid legal speculations, while tokens still trade outside the state with muted market reactions.
• Legal experts suggest that Coinbase’s suspension may relate to regulatory concerns in New York, with meme tokens not classified as securities by the SEC.

In New York, Coinbase has suspended trading for three popular meme tokens: Floki, Turbo, and Giga. While these tokens will remain available on the platform for users outside the state, individuals within New York can no longer trade them. 

We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on recent reviews, we will suspend trading for FLOKI (FLOKI), Turbo (TURBO), and Gigachad (GIGA) in New York only on April 14, 2025, on or around 2 PM ET.

— Coinbase Assets (@CoinbaseAssets) March 12, 2025

This move follows a review of assets listed on the platform as part of Coinbase’s ongoing monitoring process. The decision has sparked immediate speculation from legal experts, with some suggesting that it may be linked to an ongoing legal matter in the state.

Despite the news, the market reaction has been relatively muted. According to CoinGecko data, Floki recorded an increase of 3.6%, Giga increased by 1.1%, and Turbo gained 5.4% within the last 24 hours. This muted response comes after the tokens’ initial price surge, as reported by ETHNews, following their listing on Coinbase’s roadmap in late 2024.

Floki was added in November, with Turbo and Giga following in December. The “Coinbase effect,” a term often used to describe the price increase following a Coinbase listing, was noted. Following their announcement, Turbo and Giga saw price surges of 15% and 37%, respectively.

Legal Speculation and Analysis

Legal experts increasingly speculate that Coinbase’s decision may be tied to a pending legal case in New York. Ariel Givener, the founder of GivenerLaw, noted on social media that this action is likely linked to ongoing regulatory concerns in the state.

I’d put a lot of money on this being tied to a pending legal case in NY. https://t.co/Bb98K3j9iJ

— Ariel Givner (@GivnerAriel) March 12, 2025

The legal implications of meme tokens have been a topic of growing discussion, especially as the SEC has clarified its stance on them, asserting that they do not qualify as securities under U.S. law. The SEC has argued that meme coins are outside its jurisdiction and often do not generate yield or provide rights to future profits.

Coinbase’s Ongoing Monitoring

The suspension marks another chapter in Coinbase’s efforts to monitor the assets available on its platform. As the exchange deals with an expanding regulatory landscape, it continues to review and adjust its listings based on various legal and operational factors. Coinbase’s recent expansion into India, following regulatory challenges in 2023, indicates the company’s efforts to enter new markets and adapt to changing regulations.

Despite the legal speculations surrounding Coinbase’s move, the market response has not been intense. Some experts have criticized the timing and handling of the situation. Crypto advisor Nekoz Tek pointed out that many retail users who purchased the tokens during the recent market downturn may now face difficulty transferring or swapping their holdings. He argued that this situation leaves users, especially those unfamiliar with cryptocurrency, at a disadvantage. 

Additionally, some industry observers have raised concerns about the rapid listing of these meme tokens without clear warnings about probable regulatory challenges. This could lead to situations where investors, particularly non-crypto natives, are stuck holding assets they cannot easily exchange.