Meme Coins Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA) Will Be Suspended From Trading on Coinbase in New York

Coinbase will suspend trading for Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA) in New York, citing a routine review of its listed assets.

Coinbase will suspend trading for Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA) in New York, the exchange announced. The move, which is part of a routine review of its listed assets, 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.

Coinbase will suspend trading for FLOKI, TURBO, and GIGA in New York on April 14 at 2 PM ET.

Recently, there has been speculation that a pending legal case in New York could be linked to the exchange’s decision.

In January 2023, the exchange agreed to pay $100 million to settle charges with New York regulators for failing to meet compliance standards. These included violations of state banking laws and regulations related to virtual currencies and cybersecurity.

Earlier this year, a federal judge ruled that Coinbase must face a lawsuit that accuses 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 cases suggest that Coinbase’s decision to suspend meme coin trading in New York is a strategic move to address compliance issues and mitigate potential risks in the state.

The move comes as the market response to the news varied significantly across the three affected coins.

In 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 latest announcement follows its strong interest in meme coins, which began late last year. 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.

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.

In other news, 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.

The agency explained that an instrument may be an unregistered security if it meets the criteria for an investment contract, which are defined in the Supreme Court case SEC v. W.J. Howey Co.

The SEC noted that an instrument, token, or coin sold through a blockchain network may be an unregistered security if it is sold to raise funds for the project’s development and provides investors with the right to receive a portion of the project’s net income, profits, or value.

Additionally, if the instrument’s value is substantially dependent on the efforts of others, and investors are relatively passive, it may be viewed as an investment contract.

If an instrument is determined to be an unregistered security, the SEC can pursue enforcement actions.

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