Coinbase will suspend trading for Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA) in New York, citing a routine review of its listed assets.
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The U.S.’s largest crypto exchange said the suspension will take effect on April 14. While all three meme coins will remain listed on the platform, users in New York will no longer be able to trade them.
Legal Concerns Behind Coinbase’s Suspension
The move has fueled speculation about a possible legal motive. Ariel Givener, founder of GivenerLaw, suggested, “I’d bet this is linked to an ongoing legal matter in New York.”
In January 2023, Coinbase agreed to a $100 million settlement with New York regulators after failing to meet compliance standards that violated state banking laws and regulations related to virtual currencies and cybersecurity.
Further complicating matters, in February 2025, a federal judge ruled that Coinbase must face a lawsuit accusing the platform of illegally selling unregistered securities. The court determined that Coinbase acted as a direct seller of certain tokens, exposing the exchange to significant legal risks.
These legal challenges suggest that Coinbase’s decision to suspend meme coin trading in New York is a strategic move to address compliance issues and mitigate potential legal risks in the state.
Different Market Reactions
Despite Coinbase’s announcement, the market response has varied significantly across the affected coins.
Over the past 24 hours, Floki (FLOKI) slipped by 1.46%, Gigachad (GIGA) plummeted nearly 13%, while Turbo (TURBO) defied the trend, climbing 3.2%, according to CoinMarketCap.
Coinbase’s Shifting Stance on Meme Coins
Coinbase’s latest move comes just months after showing strong interest in meme coins. In November, FLOKI was added to the exchange’s listing roadmap, driving the token to a five-month high.
TURBO and GIGA followed in December, surging 15% and 37%, respectively, after their inclusion was announced.
Tokens often see price surges after being listed, as greater accessibility drives investor demand. As the largest U.S. crypto exchange, Coinbase provides a gateway for retail traders, making newly listed assets more accessible—and often triggering sharp price increases.
In addition to that, meme coins have also carved out a major niche in the crypto market recent years. One of the biggest drivers of this trend is Pump.fun, a Solana-based platform that has minted more than 8.5 million meme tokens since launching in early 2024.
SEC: Meme Coins Are Not Securities
In a separate development, the U.S. Securities and Exchange Commission (SEC) has reaffirmed that meme coins generally do not qualify as securities under federal law.
The regulator clarified that meme coins do not generate yield or grant rights to a company’s income, profits, or assets. As a result, their offer and sale do not require SEC registration under the Securities Act of 1933.
However, the SEC cautioned that some projects labeled as “meme coins” may still fall under securities laws if they function as investment contracts.
Why This Matters
Coinbase’s suspension of FLOKI, TURBO, and GIGA trading in New York appears to mitigate legal risks amid ongoing regulatory challenges. For investors, it raises questions about crypto trading security and the importance of regulatory compliance.
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