Coinbase’s Base App Pivots to Trading-First Model to Fuel Onchain Economy Growth
In a strategic shift announced in early 2026, Coinbase's layer-2 blockchain platform, Base App, is transitioning to a trading-centric model to accelerate adoption and liquidity within the onchain economy. Originally launched in July, the platform is rebranding to position itself as the leading hub for digital asset trading and utility, directly addressing user demands for high-quality assets and frictionless interactions. Jesse Pollak, Head of Protocols at Coinbase and a key figure behind Base (known online as jesse.base.eth), detailed this new direction via social media, emphasizing that the app will prioritize trading functionalities to drive broader network effects. This MOVE signals Coinbase's deepening commitment to expanding its ecosystem beyond a simple exchange, aiming to capture more value within the decentralized finance (DeFi) stack. By focusing on trading, Base intends to solve critical pain points around asset discovery, liquidity, and user experience, which are often barriers to mainstream onchain adoption. The pivot reflects a growing trend where infrastructure providers evolve into comprehensive economic platforms, fostering native demand rather than relying solely on external bridges. For the cryptocurrency market, this development underscores the intensifying competition among layer-2 solutions to become the primary environment for financial activity. Base's integration with Coinbase's vast user base and regulatory standing could give it a significant edge, potentially onboarding millions to onchain trading. The shift also highlights the maturation of the onchain economy, where seamless trading of diverse assets—from cryptocurrencies to tokenized real-world assets—becomes the core utility. As Base enhances its trading features, it may catalyze increased developer activity, more innovative dApps, and greater capital inflow into its ecosystem. This strategic realignment is poised to strengthen Coinbase's overall moat, creating a synergistic loop between its centralized exchange and decentralized Base network. Ultimately, Base's trading-first model could accelerate the vision of a more open, efficient, and accessible global financial system built on blockchain technology.
Base App Shifts to Trading-First Model to Power Onchain Economy
Base App, introduced in July, is pivoting to a trading-first model to drive demand and distribution across the onchain economy. The rebranded platform aims to become the premier hub for asset trading and utility, responding to user feedback that emphasized the need for high-quality assets and seamless interaction.
Jesse Pollak, known as jesse.base.eth, outlined the new direction in a social media post. The app will prioritize use-case-oriented functionality, offering a broader selection of tradable assets. "In a tokenized world, our ambition is to move demand and distribution everywhere," Pollak stated, positioning Base App as the ideal gateway for onchain economic activity.
Coinbase CEO Rejects Senate Crypto Bill, Calls It Worse Than No Regulation
Coinbase CEO Brian Armstrong has publicly withdrawn support for the US Senate's proposed crypto market structure bill, declaring the latest draft worse than no legislation at all. After reviewing the Senate Banking Committee's text, Armstrong warned the bill would cripple the industry by banning tokenized equities, restricting DeFi, and eroding financial privacy through government surveillance of transactions.
The criticism arrives as crypto markets rally—Bitcoin approaches $98,000 and ethereum tests $3,500, with the total market cap up 3% in 24 hours. Armstrong specifically condemned provisions that would diminish the CFTC's authority while expanding the SEC's reach, alongside stablecoin amendments he claims would stifle competition by prohibiting yield-bearing models.
"We'd prefer no bill to this bad bill," Armstrong stated on X, emphasizing the draft's fundamental flaws extend beyond minor fixes. The proposal threatens to freeze innovation during a critical growth phase for digital assets.
Coinbase CEO Opposes Senate Crypto Bill, Citing Regulatory Overreach
Coinbase CEO Brian Armstrong has publicly rejected the Senate's proposed crypto legislation, declaring the exchange cannot support the current draft. The bill seeks to clarify token classification and grant the CFTC oversight of spot markets—a longtime industry priority.
Armstrong's objections center on three key issues: potential bans on tokenized equities, restrictive DeFi provisions, and privacy compromises. His critique highlights a growing divide between crypto innovators and Washington regulators.
The legislation's treatment of stablecoin rewards has emerged as a particular flashpoint, with Armstrong warning against provisions that could limit yield opportunities. This reflects broader tensions between traditional banks and crypto firms over deposit-like products.
Senate Committee Delays Crypto Bill Markup Amid Coinbase Opposition
The Senate Banking Committee abruptly postponed its markup of a landmark cryptocurrency market structure bill after Coinbase CEO Brian Armstrong publicly withdrew support for the current draft. The delay underscores growing tensions between policymakers and industry leaders over how to regulate digital assets.
Chairman Tim Scott confirmed the pause in proceedings late Wednesday, citing ongoing bipartisan negotiations. The bill seeks to clarify token classification and assign spot market oversight to the CFTC—a framework Armstrong now calls unacceptable after reviewing the latest text. "Coinbase unfortunately can't support the bill as written," he stated.
Behind the scenes, a lobbying battle intensifies over stablecoin rewards. Traditional banks are pressuring lawmakers to restrict crypto platforms from offering deposit-like yields, arguing such products blur regulatory boundaries established under existing financial laws.
