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Coinbase noted that the recent action is part of its efforts to enhance overall market health and consolidate liquidity.
One of the world’s largest crypto exchanges Coinbase Global Inc (NASDAQ: COIN) has been taking measures in order to boost liquidity on the platform. As a result of this, Coinbase has suspended a total of 80 non-USD trading pairs. This includes cryptocurrencies like Bitcoin, stablecoins, and fiat currencies like Euro.
Coinbase recently announced the removal of several trading pairs on October 16, as part of its efforts to enhance overall market health and consolidate liquidity. These trading pairs were delisted from Coinbase, Advanced Trade, and Coinbase Prime at 19:30 UTC on the same day.
This action aligns with Coinbase’s earlier plans to suspend these markets, emphasizing that users can still trade them in the more liquid USD order books by utilizing the exchange’s USDC balances. Coinbase pointed out that these removed markets constituted only a negligible portion of its total trading volume.
Coinbase has continued its efforts to enhance liquidity by suspending trading pairs on its platforms, following a similar move in mid-September when the exchange removed 41 non-USD markets, citing the same rationale. Notably, none of the trading pairs suspended included USDC, a stablecoin jointly developed by Coinbase and Circle.
Coinbase has undertaken these liquidity-improving measures at a time when it faces a decline in trading volumes throughout the year. According to data from CCData, Coinbase’s spot trading volumes for Q3 2023 saw a significant drop of 52% compared to the same period in 2022.
In a broader industry context, other leading cryptocurrency exchanges, including Binance, have also experienced a reduction in their spot market share dominance. CCData data indicates that Binance’s spot market share declined for the seventh consecutive month in September 2023, dropping from 55% early in the year to 34% in September 2023.
Coinbase Pressures SEC for Regulatory Rules
Coinbase has been making several adjustments to its policies to comply with the regulatory rules. However, the crypto exchange has been fighting and uphill battle in order to compel the US SEC to bring clarity on crypto regulations.
On Monday, Coinbase filed a complaint in the US Court of Appeals for the Third Circuit, accusing the SEC of neglecting its regulatory duties. This move comes after Paul Grewal, Coinbase’s Chief Legal Officer, publicly called on the SEC to provide a comprehensive response to a rulemaking petition concerning cryptocurrencies that Coinbase had submitted the previous year.
Grewal criticized the SEC’s delays and emphasized the urgency of the matter on various social media platforms. He expressed dissatisfaction with the SEC’s previous response, deeming it insufficient, and demanded a thorough reply within one month. Coinbase asserts that the SEC initiated an enforcement action against them without clarifying how existing laws pertain to cryptocurrencies.
The company contends that its rulemaking petition has been consistently overlooked by the SEC for over a year. Following this enforcement action, the court has requested the SEC to provide an explanation for its denial of Coinbase’s petition.