BASE, an Ethereum Layer 2 chain developed by Coinbase, is not ruling out the possibility of issuing tokens in the future. In an exclusive interview with Decrypt, Coinbase’s Chief Legal Officer, Paul Grewal, suggested that token issuance might become a reality at some point down the line.
This potential development holds significant importance for market participants, especially after witnessing a wave of airdrops and token issuances by various Layer 2 protocols, including Arbitrum and Optimism, in the past year. Airdrop farming has emerged as a dependable passive income stream for traders, and the community has been eagerly anticipating a BASE token launch since the mainnet’s release on August 9.
While BASE tokens remain a possibility, Grewal clarified that Coinbase’s current focus is not primarily on the economic aspects and tokenization of the protocol. The exchange platform has more immediate concerns, notably regulatory clarity.
Grewal explained that the primary objective behind the BASE launch was to make the technology available for developers and participants, with tokenization taking a backseat. Coinbase’s foremost goal has been to facilitate the development of use cases and applications to attract the next 50 million users to the world of cryptocurrencies.
The Chief Legal Officer underscored the importance of regulatory clarity and certainty, stating that protocols need such clarity to fully function and provide incentives like tokenization for users. While Grewal did not provide a specific timeline for a potential BASE token launch during the interview, he emphasized the significance of regulatory conditions.
Grewal also shed light on how the stance of the U.S. Securities & Exchange Commission (SEC) towards cryptocurrencies has acted as a deterrent to innovation. He noted that regulatory ambiguity remains a significant obstacle to tokenization for protocols like BASE.
Coinbase has recently rallied the cryptocurrency community to advocate for regulatory clarity through a coordinated effort. Grewal mentioned the “Stand with Crypto” movement, designed to unite the 50 million Americans associated with cryptocurrencies in a call for clear and comprehensive crypto regulations, championed by Coinbase.
