Coinbase’s fight over new crypto market rules has shifted toward a surprising target. Citron Research claimed the exchange fears tokenization rival Securitize more than unclear regulation. The short seller argued that Coinbase pulled back support for the CLARITY Act because cleaner rules could strengthen competitors. The dispute surfaced as Securitize moves closer to public markets through a planned SPAC merger with Cantor Equity Partners II. Citron Claims Coinbase Wants Control, Not Competition Citron Research criticized Coinbase CEO Brian Armstrong after he discussed tokenized assets on CNBC. The firm said Coinbase wants lawmakers to clarify crypto rules while limiting rivals. Hence, Citron framed Coinbase’s stance as defensive rather than industry focused. Citron argued that Coinbase earns meaningful revenue from stablecoin yield programs. Consequently, it claimed Coinbase fears losing that edge if tokenized securities grow faster. Tokenized equities could unlock new trading options for investors. However, they could also reduce Coinbase’s influence in key areas. Coinbase withdrew support for the CLARITY Act late Wednesday. The company said the bill could block tokenized equity products in practice. Additionally, the Senate Banking Committee canceled a scheduled markup session shortly after. Securitize Holds Licenses and Moves Toward a SPAC Listing Securitize operates as a tokenization platform that focuses on securities. Citron said that model already fits existing legal frameworks. Moreover, it argued the firm holds the licenses needed to issue tokenized securities. That gives Securitize an advantage if lawmakers create clearer rules. Securitize has already issued more than $4 billion worth of tokenized assets. Besides, it has support from major financial names. Citron highlighted BlackRock as a key backer. It described the situation as a clash between Coinbase and powerful Wall Street allies. Wider Battle Over Tokenized Markets The clash adds pressure to the debate around tokenized equities in the United States. Tokenized shares could shorten settlement times and expand access. Significantly, they could also reshape how investors lend and trade securities. Coinbase sits in a complicated spot in that race. Coinbase Ventures invested in Securitize during a 2018 fundraising round. However, Citron suggested the strategic alignment has shifted as tokenization moves mainstream. Cantor Equity Partners II plans to take Securitize public through a SPAC deal. The timeline points to the first half of 2026.
