Approximately one million new tokens are created weekly according to Coinbase CEO Brian Armstrong.
As the digital asset explosion unfolds, Armstrong is sounding the alarm on outdated listing processes and hurdles in crypto regulation.
On January 26, Armstrong took to X (formerly Twitter) to propose a more efficient method for listing cryptocurrencies on exchanges like Coinbase. His message?
The current approval system isn’t cutting it anymore.
Too Many Tokens, Too Little Time
Armstrong said,
“Evaluating each one by one is no longer feasible.”
With 1 million new tokens entering the market every week, crypto exchanges face an increasingly overwhelming challenge in evaluating and listing them all.
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The sheer volume has created a “high-quality problem” but also one that can no longer be addressed with the current, labor-intensive process.
According to Armstrong, for exchanges like Coinbase, the traditional “allow list” system—where tokens are manually reviewed and approved—is quickly becoming outdated.
Armstrong’s call for a rethink on how tokens are listed highlights the logistical difficulties of keeping pace with the rapid growth of the market.
But it’s not just the exchanges that are struggling. Regulators are feeling the pressure too.
Armstrong noted that regulators are not equipped to approve each new token individually, especially with 1 million tokens being created every week.
He recommends a shift from the “allow list” to a more efficient “block list” system. This approach would focus on blocking problematic tokens while allowing others to enter the market freely.
Armstrong wrote,
“Regulators need to understand that applying for approval for each one is totally infeasible at this point.”
The current method, he argued, isn’t scalable. Instead, he argues that regulators could use data-driven tools—like customer reviews and on-chain scanning—to assess tokens more efficiently and help users navigate the flood of new assets.
Coinbase CEO Advocates Deeper DEX Integration
As the market grows, Coinbase is also pivoting toward decentralized exchanges (DEXs).
Armstrong stated that Coinbase will continue to integrate DEX support, providing customers with more options for trading.
The aim is to make the experience seamless, whether the trade occurs on a centralized exchange (CEX) or a decentralized one.
“We’ll continue integrating native DEX support more deeply,” Armstrong explained. “Customers shouldn’t need to know or care whether the trade is happening on a DEX or CEX.”
The growing volume of tokens is just one of the many challenges facing the crypto market.
At the time of Armstrong’s remarks, Bitcoin’s market dominance stood at 57.60%, with a total market capitalization of $2.08 trillion, according to CoinMarketCap.
This demonstrates just how large the crypto space has become and why outdated regulatory methods are struggling to keep pace.
Despite the challenges, Armstrong is optimistic about the future.
He acknowledged that the cryptocurrency space is in a period of rapid innovation, but he warned that if regulators don’t adapt to this new reality, they risk hindering its growth.
For exchanges like Coinbase, keeping up with the flood of new tokens is only the tip of the iceberg.
Source: https://www.thecoinrepublic.com/2025/01/27/regulators-cant-keep-up-coinbase-ceo-urges-crypto-approval-overhaul/