Coinbase is suspending trading of three popular meme coins in New York next month, which has fueled speculation about potential legal challenges. The exchange announced Wednesday that it will halt trading of Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA) for New York users starting April 14, 2025, at 2 PM ET. While these tokens will remain listed on the platform, users in the state will be restricted from trading them.
The announcement, made via Coinbase’s official X account, framed the move as part of the company’s routine review of listed assets. “We regularly monitor the assets on our exchange to ensure they meet our listing standards,” Coinbase stated. The company did not provide further details regarding the rationale behind the decision.
Market Reaction and Legal Speculation
Despite the trading suspension, the affected tokens saw limited volatility. Over the past 24 hours, Floki’s price climbed 3.6%, Giga rose by 1.1%, and Turbo gained 5.4%, according to CoinGecko data. The muted market response suggests traders were not caught off guard by the development.
Legal experts have quickly weighed in on Coinbase’s decision. Ariel Givener, founder of GivenerLaw, speculated on X that the move could be tied to a pending legal case. “I’d put a lot of money on this being tied to a pending legal case in NY,” Givener wrote, without citing specific evidence.
The Securities and Exchange Commission (SEC) has recently clarified that it does not consider meme coins to be securities, a stance that could influence regulatory scrutiny of trading platforms.
The agency stated last month that meme coins “do not generate a yield or convey rights to future income, profits, or assets of a business.” While this interpretation suggests that meme tokens fall outside the SEC’s jurisdiction, it does not preclude state-level regulatory actions.
Coinbase’s relationship with meme tokens has shifted in recent months. The exchange added Floki to its listing roadmap in November, triggering a sharp price rally. Turbo and Giga followed in December, soaring 15% and 37%, respectively, after being included on Coinbase’s roadmap.
The so-called “Coinbase Effect” has historically driven price surges for newly listed assets, though these gains often stabilize over time.
