Citron Slams Coinbase Over Regulatory ‘Fear’ — Why It’s Betting Big on Securitize Instead

Citron Research has ignited a fresh debate at the intersection of crypto regulation, competition, and Wall Street power by publicly backing tokenization firm Securitize while sharply criticizing Coinbase for pulling support from a key US crypto market structure bill.

The clash comes as Washington attempts to finalize clearer rules for digital assets and as traditional financial players push deeper into blockchain-based finance.

The immediate market reaction shows the tension, as shares of Cantor Equity Partners II, the special-purpose acquisition company set to take Securitize public in the first half of 2026, jumped as much as 10% after Citron’s comments before settling to a modest gain.

Coinbase stock moved in the opposite direction, falling nearly 4% on the same day.

Citron Links CLARITY Resistance to Competitive Pressure

Citron, led by Andrew Left, framed the episode as more than a policy disagreement, describing it as a struggle over who will dominate the next phase of crypto infrastructure.

In an announcement made on X, Citron argued that Coinbase’s opposition to the Senate Banking Committee’s draft market structure bill, commonly referred to as the CLARITY Act, was driven by fear of competition from firms like Securitize.

Citron noted that Coinbase wants regulatory clarity without opening the door to rivals that already operate with the licenses required to issue and manage tokenized equities.

The research firm said a cleaner and more permissive framework for tokenized securities would disproportionately benefit Securitize, whose entire business is built around that model, while eroding Coinbase’s advantage in areas such as stablecoin-related revenue.

Coinbase, by contrast, has publicly distanced itself from the current Senate draft.

Chief Executive Brian Armstrong cited several concerns, including what he described as a de facto ban on tokenized equities, new restrictions affecting decentralized finance and user privacy, provisions that would weaken the Commodity Futures Trading Commission relative to the Securities and Exchange Commission, and language that would limit rewards tied to stablecoins.

He argued that these elements would make the bill worse than the status quo and accused banking interests of influencing restrictions on stablecoin yield, which Coinbase views as core to its business.

Regulatory Fog Returns as Senate Postpones Crypto Bill Markup

Citron, on the other hand, believes Coinbase’s resistance shows concern that regulated tokenization platforms could erode its position as crypto markets mature and institutional capital takes a larger role.

Securitize has quietly emerged as one of the largest players in the real-world asset tokenization market, having issued more than $4 billion in tokenized assets to date.

Its partners include BlackRock, which uses Securitize infrastructure for its BUIDL tokenized fund, as well as Apollo, Hamilton Lane, KKR, and VanEck.

Unlike most crypto-native companies, Securitize operates with a regulated stack, holding broker-dealer and transfer agent licenses that allow it to issue and manage tokenized securities within existing legal frameworks.

Citron sees this positioning as critical if US lawmakers succeed in drawing firmer lines between securities and commodities in crypto markets.

The policy outlook remains uncertain after the Senate Banking Committee delayed its planned markup of a crypto market structure bill, saying more negotiations are needed.

Coinbase’s position is drawing attention in Washington, showing its influence as a major political donor and a key participant in past regulatory talks.

Industry reaction to the proposal has been divided, with some executives and investors warning the draft could slow innovation in areas such as tokenization, decentralized finance, and privacy-focused tools.

Others argue that passing a framework, even an imperfect one, would provide clarity and leave room for revisions through future amendments.