Citron Research Claims Coinbase Fears Tokenization Rival Securitize

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TLDR

Cantor Equity Partners II saw a rise in stock value after Citron Research backed tokenization firm Securitize.
Citron Research criticized Coinbase for withdrawing support from crypto market structure legislation.
The research firm argued that Coinbase fears competition from tokenization companies like Securitize.
Securitize, with over $4 billion in tokenized assets, stands to benefit from clearer regulations.
Citron highlighted a power struggle between Coinbase and emerging tokenization players like Securitize.

Cantor Equity Partners II (CEPT), the special-purpose vehicle set to take tokenization firm Securitize public early this year, saw its stock rise after Citron Research criticized Coinbase for withdrawing support from crypto market structure legislation. The research firm led by Andrew Left argued that Coinbase is withdrawing support not because the bill harms crypto, but because it would benefit tokenization companies like Securitize. The move highlighted a power struggle in the crypto industry, with Coinbase facing competition from tokenization players such as Securitize.

Coinbase Fears Competition from Tokenization Firms

Citron Research’s recent post sharply criticized Coinbase for backing out of the crypto market structure bill. The research firm claimed that Coinbase’s objections stemmed from the bill’s potential to boost tokenized securities. “Coinbase wants the benefits of CLARITY without the competition it would create,” Citron said, indicating that the exchange is more focused on protecting its own position than fostering the growth of the industry as a whole.

Securitize, which has issued over $4 billion in tokenized assets, stands to gain from clearer regulations. Citron emphasized that Coinbase is trying to prevent the rise of companies like Securitize, which holds the necessary licenses to offer tokenized securities. The firm argued that clearer rules would benefit Securitize, giving it an advantage over established players like Coinbase.

Securitize’s Growing Influence and Coinbase’s Retreat

Securitize is a key player in the emerging tokenization market and has strong backers, including BlackRock. These backers give Securitize the resources to compete effectively in the evolving crypto market. Citron Research pointed to the power struggle between Coinbase and newer players like Securitize, highlighting a shift in the market dynamics.

Coinbase’s withdrawal of support for the bill has led to a decline in its stock, which dropped nearly 4% after the decision. The cancellation of the Senate Banking Committee’s markup on the crypto bill further fueled concerns about the future of crypto market regulation. Despite the setback, Securitize saw a boost in its stock, climbing as much as 10% following Citron’s endorsement. This reflected growing investor interest in tokenization amid uncertainty over the direction of crypto regulation.

In conclusion, the competition between Coinbase and tokenization firms like Securitize has intensified. Citron Research’s support for Securitize underscores the growing influence of tokenization in the crypto sector.