Brian Armstrong calls for regulatory flexibility as exchanges struggle to keep up with a flood of new altcoins.

On X, formerly Twitter, Coinbase CEO He said About 1 million tokens are now launched every week, meaning that “evaluating each one individually is no longer possible.”

Armstrong confirmed that the platform is reviewing its listing process, which sees digital assets undergo rigorous vetting before being made available.

He said that currently, there is a dedicated group responsible for evaluating altcoins according to legal standards, compliance standards and technical security standards.

But in the future, Armstrong wants to adopt a different approach, which means that all tokens will be allowed by default, with projects blocked if there are bad customer reviews or questionable data on the chain.

“Regulators need to understand that applying for approval for each is not at all possible at this stage either,” he wrote.

Not all cryptocurrency executives agree with Armstrong's position. Danny Scott, CEO of British Bitcoin-only exchange CoinCorner, responded, asking: “At what point do you guys need a gambling license?”

“Expanding on what he meant,” Scott said. Decryption: “Coinbase is admitting that they just want to list everything and anything, they don't care about quality, they don't care about the solidity of their customers, knowing that all altcoins have trended bearish against Bitcoin over the years.”

He doubled down on the gambling comparison as well.

“There is now more skill in selecting a horse in races than in selecting any horse Meme symbol “It will then be pumped out, it's literally a gamble at this point and Coinbase's desire to list more only exacerbates the problem,” Scott added.

Prominent cryptocurrency critic Peter Schiff Also stacked on X, “There's a lot of 'limited supply' idea out there,” he told Armstrong. “The inflation rate in cryptocurrencies is off the charts, and almost all of these tokens are almost identical to bitcoin in all the ways that really matter, including the cap on their individual supply.”

The token wave that has hit the market has raised concerns that the “altseason,” which sees smaller cryptocurrencies outperforming Bitcoin, may fail to materialize.

On-chain analyst Ali Martinez noted that there are now more than 36.4 million altcoins, compared to less than 3,000 during the famous bull run in late 2017 and early 2018.

“With such a huge supply, the market has changed dramatically,” he wrote.

Modified by Stacey Elliott.