Citron Research has reignited the crypto regulation debate by publicly backing tokenization firm Securitize while taking a sharp swing at Coinbase for opposing the Senate's draft market structure bill. The research firm, led by Andrew Left, framed the move as a battle over who will dominate the next phase of crypto infrastructure, not just a policy disagreement.
The market reaction was immediate. Shares of Cantor Equity Partners II, the SPAC set to take Securitize public in 2026, jumped as much as 10% after Citron's comments before settling to a modest gain. Coinbase stock, meanwhile, fell nearly 4% on the same day.
Citron took to X to argue that Coinbase's opposition to the CLARITY Act is driven by fear of competition from firms like Securitize. The firm claims Coinbase wants regulatory clarity but doesn't want to open the door to rivals already licensed to issue and manage tokenized equities. According to Citron, a more permissive framework for tokenized securities would disproportionately benefit Securitize, whose entire business is built around that model, while eroding Coinbase's advantage in stablecoin-related revenue.
Coinbase CEO Brian Armstrong has publicly distanced the exchange from the Senate draft, citing concerns that it would effectively ban tokenized equities, impose new restrictions on DeFi and user privacy, weaken the CFTC relative to the SEC, and limit stablecoin rewards. Armstrong argued these elements 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.
Citron 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 real-world asset tokenization, 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 is 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.
